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Commerce Signs Letters of Intent for $874 Million in CHIPS Incentives and Seeks Minority Equity Stakes

The investments aim to speed U.S. AI hardware research and secure taxpayer returns through planned minority, non-controlling equity positions.

Overview

  • The Commerce Department signed seven letters of intent on Wednesday proposing $874 million in CHIPS and Science Act incentives with GlobalFoundries, Kepler, Multibeam, Extropic, Thintronics, OBSIDIA Semiconductors and Aeluma.
  • The department plans to take a minority, non-controlling equity stake in each company as a condition of funding to boost potential returns for U.S. taxpayers.
  • The announcement lists company-specific maximum allocations and technology goals, including up to $300 million for GlobalFoundries to accelerate co‑packaged optics and up to $245 million for Kepler to develop high‑performance AI memory.
  • The letters are preliminary and require further departmental diligence and formal approval before any awards are finalized or funds are disbursed.
  • The moves draw on the CHIPS Act’s goal to rebuild domestic compute and chip supply chains and could create high‑paying R&D jobs while raising legal and governance questions about government equity in private tech firms.