The Department of Commerce has announced a significant investment in semiconductor manufacturing. This week, it disclosed plans to allocate more than $870 million in federal incentives in exchange for minority equity stakes in seven semiconductor companies. This initiative comes under the CHIPS and Science Act.
On Wednesday, the National Institute of Standards and Technology (NIST) detailed in a blog post the financial commitment made by Commerce’s CHIPS Research and Development Office. Seven companies will receive a combined total of $874 million in federal funding to advance research and development in crucial technologies, such as advanced integrated photonics. This technology leverages light instead of electricity for data transfer and processing. Funds will also support research on computing architectures and memory, particularly focusing on artificial intelligence systems.
NIST emphasized that the Department will acquire a minority, non-controlling equity stake in each company, aiming to optimize returns for U.S. taxpayers. Specific allocations include up to $300 million for GlobalFoundries, focusing on semiconductor manufacturing; Kepler will receive up to $245 million for advancements in AI memory and logic technologies. Multibeam Corp. is allotted up to $140 million for semiconductor equipment manufacturing, alongside remaining funds for Extropic, Thintronics, Obsidia Semiconductors, and Aeluma Inc.
Commerce Secretary Howard Lutnick highlighted the broader implications of these investments, noting their potential to boost domestic capabilities, create high-paying jobs, and maintain U.S. leadership in the semiconductor industry.
To learn more, you can read the full report at TheHill.com. Welcome to The Hill’s Technology newsletter, presented by Julia Shapero and Miranda Nazzaro, covering developments from Capitol Hill to Silicon Valley.
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