Allegro MicroSystems, Inc. (ALGM)

Polar Semiconductor set to gain US government grant of $120 million

Polar Semiconductor is set to receive a $120 million U.S. government grant to expand its plant in Minnesota, which will allow the company to double its U.S. production capacity of sensor and power chips within two years. The award, part of the Biden administration's $52.7 billion semiconductor manufacturing and research subsidy program, follows an agreement by Polar's current owners to sell down their stakes to U.S. private equity firms so that the company can become majority U.S.-owned. The Commerce Department, which made the grant, noted shortages of power and sensor chips were a key issue during the COVID-19 pandemic, disrupting many sectors.