Check out the progress of the Commerce Department's funding incentives for manufacturing chips vital to national security and space.

The U.S. Commerce Department said on Monday it is finalizing nearly $60 million in government subsidies for BAE Systems to build chips used in jets and satellites, and for Rocket Lab to build compound semiconductors used in satellites and spacecraft.

The finalized awards come as the Biden administration tries to quickly roll out CHIPS funding ahead of Trump’s term.

The United States has massive plans in expanding commercial satellites and its F-35 program with BAE Systems and Rocket Lab.

The US Department of Commerce has awarded two significant grants under the CHIPS Incentives Program. The funding will go to BAE Systems and Rocket Lab to advance the country's supply chain security in vital defense and space industry components.

Rocket Lab USA ( RKLB, Financial) shares rallied more than 8% on Tuesday following the approval of a CHIPS Act Grant. Through this Grant, the company will receive $23.9 million under the CHIPS & Science Act to upgrade its semiconductor operation in Albuquerque, New Mexico.

The US government is investing in chip production. BAE Systems will receive $35.5 million to increase chip production for F-35 jets and satellites. Rocket Lab will get $23.9 million to boost solar cell production for space programs.

The Commerce Department is hurrying to finalize federal subsidies to semiconductor manufacturers to ensure domestic sources of the vital computer processors.