Commerce Department ties equity stakes to $874 million tech funding for seven firms
The Commerce Department will award up to $874 million in CHIPS Act incentives to seven technology companies, requiring a minority, non-controlling equity share in each as a condition.
The U.S. Commerce Department announced that it plans to allocate up to $874 million in incentives under the CHIPS and Science Act to seven technology firms, provided the companies grant the department a minority, non-controlling equity stake. The recipients—GlobalFoundries, Kepler, Multibeam Corporation, Extropic, Thintronics, OBSIDIA Semiconductors and Aeluma—have each signed letters of intent, with final awards pending additional review.
Funding allocations vary, with GlobalFoundries eligible for as much as $300 million to accelerate co-packaged optics, while Aeluma could receive $30 million for indium-phosphide-free photonic substrates. The investments aim to speed up domestic AI hardware, advanced packaging and secure supply-chain technologies. Commerce Secretary Howard Lutnick highlighted the expected benefits of strengthened U.S. leadership in the compute supply chain, job creation and enhanced taxpayer returns. The initiative follows the passage of the CHIPS and Science Act in 2022, signed by President Joe Biden.
Why it matters
The deal ties taxpayer money to government ownership, influencing the direction of U.S. AI and semiconductor development.
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