Semiconductor producer Wolfspeed is planning to put $750 million offered under preliminary terms from the U.S. Dept. of Commerce toward construction of one plant in North Carolina and the expansion of another in New York, officials and the company announced Oct. 15.

The funding comes from 2022’s CHIPS and Science Act, which set $39 billion to support construction, expansion and modernization of semiconductor chip fabrication plants, known as fabs, and their suppliers in an effort to strengthen domestic supply chains. Additionally, Wolfspeed says it has reached an agreement for another $750 million in new financing from a group of investment funds, and that it expects to receive $1 billion in cash tax refunds from the CHIPS Act’s advanced manufacturing tax credit, giving it a total $2.5 billion more to invest in the projects.