Commerce Department to take equity in seven tech companies on track for funding

Key Points:

• The U.S. Department of Commerce announced letters of intent to provide $874 million in federal incentives to seven companies under the CHIPS and Science Act, aiming to boost domestic technology development and secure supply chains.
• The seven companies—GlobalFoundries, Kepler, Multibeam Corporation, Extropic, Thintronics, OBSIDIA Semiconductors, and Aeluma—will provide the government with a minority, non-controlling equity stake as a condition for receiving funds.
• Funding allocations include up to $300 million for GlobalFoundries to advance co-packaged optics for AI processors and $245 million for Kepler to develop high-performance AI memory technology using 3D and ferroelectric technologies.
• Other recipients include Multibeam Corporation ($140 million) for advanced chip packaging, Extropic ($75 million) for thermodynamic sampling units, Thintronics ($50 million) for ultra-low-loss inter-layer dielectrics, OBSIDIA Semiconductors ($34 million) for counterfeit detection systems, and Aeluma ($30 million) for indium-phosphide-free substrate technology.
• These investments are designed to accelerate innovation in AI infrastructure, advanced computing, and secure supply chains, reinforcing U.S. leadership in the semiconductor and compute technology sectors.