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 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.

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