Commerce Takes Equity Stakes in Semiconductor Firms

The Department of Commerce announced an allocation of over $870 million in federal incentives for the semiconductor industry. This funding aims to enhance research and development in critical technologies by acquiring minority equity stakes in seven companies.

The National Institute of Standards and Technology (NIST) detailed that the Commerce’s CHIPS Research and Development Office has signed letters of intent with these companies to disperse $874 million under the CHIPS and Science Act. The objective is to advance critical technologies like integrated photonics, compute architectures, and AI memory systems.

The agreement entails that the Department will own a minority, non-controlling equity stake in each company to ensure a return on investment for U.S. taxpayers.

Among the funding recipients, GlobalFoundries will obtain up to $300 million, Kepler up to $245 million, and Multibeam Corp. up to $140 million. Companies like Extropic, Thintronics, Obsidia Semiconductors, and Aeluma Inc. will receive the remaining amounts.

Commerce Secretary Howard Lutnick acknowledged these investments as pivotal for enhancing domestic capabilities and creating high-paying jobs to maintain America’s competitive edge in the semiconductor industry.

For further details on these developments, the full report is accessible at TheHill.com.

Welcome to The Hill’s Technology newsletter, where we track significant moves from Capitol Hill to Silicon Valley, curated by Julia Shapero and Miranda Nazzaro.

Essential Reads:

• Elon Musk plans to spend $100 million to $120 million to support Republican candidates in the 2026 midterms through his super PAC, America PAC.
• Generation Z is expressing dissatisfaction with the current political climate, particularly feeling hampered by partisan conflicts and inefficiencies.
• Delta and United have banned humanoid and pet-like robots from flights, citing safety concerns.

Crypto Corner: Bipartisan senators Ruben Gallego and Thom Tillis have proposed new ethics language for the Clarity Act to the White House. This provision aims to address concerns about public officials’ involvement with digital assets and the Department of Justice’s role in enforcement.

Senator Mark Warner expressed the necessity for clear ethical guidelines, while Tillis aims to finalize the provision soon if consensus is reached among stakeholders.

In Other News: A Bentley University-Gallup survey reveals growing concerns about AI’s impact, with 39 percent of respondents believing AI causes more harm than good.