Commerce Dept to demand equity from 7 tech companies as a condition to tap into millions in federal funding
The equity is 'to enhance the return for the US taxpayer,' the department says
https://www.foxbusiness.com/politics/commerce-dept-demand-equity-from-tech-companies-condition-tap-millions-federal-funding
The Commerce Department indicated that the federal government is on track to dole out millions of dollars to seven companies to fund technology development but will require the businesses to fork over equity in exchange for the money.
"The Department of Commerce today announced the signing of 7 letters of intent to provide $874 million in federal incentives under the CHIPS and Science Act," a Wednesday press release noted. "These incentives will support innovative domestic technologies to dramatically increase the performance of the world's fastest computers, secure domestic supply chains, and strengthen U.S. leadership in the compute supply chain."
The CHIPS and Science Act was passed by Congress and signed by President Joe Bidenin 2022.
The seven companies, which include GlobalFoundries, Kepler, Multibeam Corporation, Extropic, Thintronics, OBSIDIA Semiconductors and Aeluma, "have entered into letters of intent with the Department of Commerce, and there will be further diligence and approval by the Department before final awards are made," according to the announcement, which is posted on the National Institute of Standards and Technology site. "The Department will receive a minority, non-controlling equity stake in each company as a condition for receiving the funds to enhance the return for the U.S. taxpayer."
The department detailed the planned funding allotments for each company should the government move forward.
"GlobalFoundries will receive up to $300 million to accelerate the domestic research and development of co-packaged optics by two to three years. By integrating photonics directly alongside AI processors, this technology will deliver ultra-fast, energy-efficient computing to reinforce U.S. leadership in AI infrastructure," the release noted. "Kepler will receive up to $245 million for R&D to develop in the U.S. a new class of high-performance AI memory technology enabled by innovative 3D and ferroelectric technologies."
"Multibeam Corporation will receive up to $140 million to develop advanced packaging technology to assemble and stack multiple chips and connect them with thousands of wires, which will enable more advanced systems necessary for AI and other advanced computing applications," the department states. "Extropic will receive up to $75 million to develop thermodynamic sampling units (TSUs) which use natural thermal fluctuations to probabilistically solve complex problems spanning simulation, optimization, and AI, at a fraction of the energy consumed by conventional computing approaches."
"Thintronics will receive up to $50 million to develop ultra-low-loss inter-layer dielectrics required for next-generation semiconductor interconnects and advanced packaging in high-performance compute, AI, and networking infrastructure," the announcement states.
"OBSIDIA Semiconductors will receive up to $34 million for R&D to deliver non-invasive counterfeit and malicious component identification systems to ensure provenance and traceability in secure supply chains for AI and advanced electronics," the release notes. "Aeluma will receive up to $30 million to develop large diameter, indium-phosphide-free substrate technology used to fabricate photodetectors and lasers for AI photonic interconnects."
"With today's compute supply chain investments, the Trump Administration is accelerating America's innovation engine," Commerce Secretary Howard Lutnick said in a statement. "These strategic investments will enhance our country's domestic capabilities, create high-paying jobs and keep America at the forefront of the semiconductor industry."
Commerce Department quietly announces 7 new equity stakes in private companies
https://thehill.com/policy/technology/6000186-commerce-ai-chips-stakes/
The Department of Commerce quietly announced this week it will designate more than $870 million in federal incentives for semiconductor manufacturing in exchange for a minority equity stake in seven companies.
In a blog post Wednesday, the National Institute of Standards and Technology (NIST) said Commerce's CHIPS Research and Development Office signed letters of intent with seven companies to provide a combined $874 million in federal funding under the landmark CHIPS and Science Act.
The financial awards will be used to conduct research and development on critical technologies and advanced integrated photonics a microchip technology that uses light instead of electricity to transfer and process data. It will also be used for research and development on compute architectures and memory for computing and artificial intelligence systems, according to NIST.
"The Department will receive a minority, non-controlling equity stake in each company as a condition for receiving the funds to enhance the return for the U.S. taxpayer," NIST wrote.
Up to $300 million will go to GlobalFoundries, a semiconductor manufacturer, while Kepler, which is developing AI memory and logic technologies, will receive up to $245 million.
Multibeam Corp. will get up to $140 million for the company's semiconductor equipment manufacturing, NIST said, with remaining funds going to equipment makers Extropic, Thintronics, Obsidia Semiconductors and Aeluma Inc.
"These strategic investments will enhance our country's domestic capabilities, create high-paying jobs and keep America at the forefront of the semiconductor industry," Commerce Secretary Howard Lutnick wrote in a press release.
The announcement comes nearly a year after President Trump announced the federal government would take a 10 percent stake in Intel, one of the nation's largest chip manufacturers, for roughly $11 billion in federal subsidies the company received.
The practice has drawn criticism from Trump's Republican base. Sen. Todd Young (R-Ind.), who drafted the foundation of the CHIPS and Science Act, said at the time the law never intended to let the federal government take a major stake in Intel or any other major company.
The legislation, signed by then-President Biden in 2022, provides federal subsidies to domestic semiconductor manufacturers to boost domestic production in the U.S.
Despite backlash last summer, the Trump administration moved last December to take a $150 million stake in xLight, a startup developing laser technology, in exchange for federal incentives.
The equity is 'to enhance the return for the US taxpayer,' the department says
https://www.foxbusiness.com/politics/commerce-dept-demand-equity-from-tech-companies-condition-tap-millions-federal-funding
The Commerce Department indicated that the federal government is on track to dole out millions of dollars to seven companies to fund technology development but will require the businesses to fork over equity in exchange for the money.
"The Department of Commerce today announced the signing of 7 letters of intent to provide $874 million in federal incentives under the CHIPS and Science Act," a Wednesday press release noted. "These incentives will support innovative domestic technologies to dramatically increase the performance of the world's fastest computers, secure domestic supply chains, and strengthen U.S. leadership in the compute supply chain."
The CHIPS and Science Act was passed by Congress and signed by President Joe Bidenin 2022.
The seven companies, which include GlobalFoundries, Kepler, Multibeam Corporation, Extropic, Thintronics, OBSIDIA Semiconductors and Aeluma, "have entered into letters of intent with the Department of Commerce, and there will be further diligence and approval by the Department before final awards are made," according to the announcement, which is posted on the National Institute of Standards and Technology site. "The Department will receive a minority, non-controlling equity stake in each company as a condition for receiving the funds to enhance the return for the U.S. taxpayer."
The department detailed the planned funding allotments for each company should the government move forward.
"GlobalFoundries will receive up to $300 million to accelerate the domestic research and development of co-packaged optics by two to three years. By integrating photonics directly alongside AI processors, this technology will deliver ultra-fast, energy-efficient computing to reinforce U.S. leadership in AI infrastructure," the release noted. "Kepler will receive up to $245 million for R&D to develop in the U.S. a new class of high-performance AI memory technology enabled by innovative 3D and ferroelectric technologies."
"Multibeam Corporation will receive up to $140 million to develop advanced packaging technology to assemble and stack multiple chips and connect them with thousands of wires, which will enable more advanced systems necessary for AI and other advanced computing applications," the department states. "Extropic will receive up to $75 million to develop thermodynamic sampling units (TSUs) which use natural thermal fluctuations to probabilistically solve complex problems spanning simulation, optimization, and AI, at a fraction of the energy consumed by conventional computing approaches."
"Thintronics will receive up to $50 million to develop ultra-low-loss inter-layer dielectrics required for next-generation semiconductor interconnects and advanced packaging in high-performance compute, AI, and networking infrastructure," the announcement states.
"OBSIDIA Semiconductors will receive up to $34 million for R&D to deliver non-invasive counterfeit and malicious component identification systems to ensure provenance and traceability in secure supply chains for AI and advanced electronics," the release notes. "Aeluma will receive up to $30 million to develop large diameter, indium-phosphide-free substrate technology used to fabricate photodetectors and lasers for AI photonic interconnects."
"With today's compute supply chain investments, the Trump Administration is accelerating America's innovation engine," Commerce Secretary Howard Lutnick said in a statement. "These strategic investments will enhance our country's domestic capabilities, create high-paying jobs and keep America at the forefront of the semiconductor industry."
Commerce Department quietly announces 7 new equity stakes in private companies
https://thehill.com/policy/technology/6000186-commerce-ai-chips-stakes/
The Department of Commerce quietly announced this week it will designate more than $870 million in federal incentives for semiconductor manufacturing in exchange for a minority equity stake in seven companies.
In a blog post Wednesday, the National Institute of Standards and Technology (NIST) said Commerce's CHIPS Research and Development Office signed letters of intent with seven companies to provide a combined $874 million in federal funding under the landmark CHIPS and Science Act.
The financial awards will be used to conduct research and development on critical technologies and advanced integrated photonics a microchip technology that uses light instead of electricity to transfer and process data. It will also be used for research and development on compute architectures and memory for computing and artificial intelligence systems, according to NIST.
"The Department will receive a minority, non-controlling equity stake in each company as a condition for receiving the funds to enhance the return for the U.S. taxpayer," NIST wrote.
Up to $300 million will go to GlobalFoundries, a semiconductor manufacturer, while Kepler, which is developing AI memory and logic technologies, will receive up to $245 million.
Multibeam Corp. will get up to $140 million for the company's semiconductor equipment manufacturing, NIST said, with remaining funds going to equipment makers Extropic, Thintronics, Obsidia Semiconductors and Aeluma Inc.
"These strategic investments will enhance our country's domestic capabilities, create high-paying jobs and keep America at the forefront of the semiconductor industry," Commerce Secretary Howard Lutnick wrote in a press release.
The announcement comes nearly a year after President Trump announced the federal government would take a 10 percent stake in Intel, one of the nation's largest chip manufacturers, for roughly $11 billion in federal subsidies the company received.
The practice has drawn criticism from Trump's Republican base. Sen. Todd Young (R-Ind.), who drafted the foundation of the CHIPS and Science Act, said at the time the law never intended to let the federal government take a major stake in Intel or any other major company.
The legislation, signed by then-President Biden in 2022, provides federal subsidies to domestic semiconductor manufacturers to boost domestic production in the U.S.
Despite backlash last summer, the Trump administration moved last December to take a $150 million stake in xLight, a startup developing laser technology, in exchange for federal incentives.
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