The U.S. Department of Commerce announced that it has signed letters of intent with 7 semiconductor companies, planning to provide a total of $874 million federal incentive funding under the CHIPS and Science Act to support the research and development of artificial intelligence (AI) and advanced computing-related chip technologies, in order to strengthen domestic semiconductor innovation capabilities and supply chain resilience.
The Department of Commerce stated on Wednesday (July 29) that this funding will be coordinated by the CHIPS Research and Development Office and will be used to promote the development of key technologies such as integrated photonics, computing architecture, advanced packaging, substrates, materials, and storage, aiming to enhance the computing capabilities of advanced computing systems and accelerate the construction of next-generation AI and high-performance computing infrastructure.
Commerce Secretary Howard Lutnick mentioned that this investment will accelerate U.S. innovation, enhance domestic semiconductor research and development capabilities, create high-paying job opportunities, and consolidate America’s leading position in the global semiconductor industry.
The department pointed out that the relevant technologies could be applied in various fields such as material innovation, industrial optimization, robotics, defense systems, drug development, and finance, providing higher performance and lower energy consumption computational foundation for the next generation AI systems.
According to the disclosed plan, among the funded companies, U.S. wafer foundry company GF will receive up to $300 million for the development of Co-Packaged Optics (CPO) technology, integrating photonics technology with AI processors to enhance data transmission speed and energy efficiency.
U.S. AI storage technology company Kepler Computing will receive up to $245 million for the development of a new generation of AI high-performance storage based on three-dimensional structures and ferroelectric technology; semiconductor equipment company Multibeam Corporation will receive up to $140 million to advance technologies such as multi-chip stacking and high-density interconnects.
In addition, AI chip startup Extropic, advanced materials company Thintronics, semiconductor technology company OBSIDIA Semiconductors, and optoelectronic semiconductor company Aeluma will each receive funding ranging from $30 million to $75 million for research and development in low-power computing, advanced semiconductor materials, chip security, and optoelectronic technology.
Bill Frauenhofer, the Director of Semiconductor Innovation and Investment at the U.S. Department of Commerce, stated that these research and development projects will drive breakthroughs in next-generation computing and communication infrastructure, enhancing the high bandwidth and high energy efficiency capabilities required by AI systems and assisting U.S. companies in deploying large-scale AI computing systems more quickly and efficiently.
The Department of Commerce stated that the signed letters of intent are only preliminary and final funding still requires completion of due diligence and approval processes. In addition, as one of the conditions for receiving government funding according to the letters of intent, the U.S. government intends to acquire minority, non-controlling equity stakes in each funded company to increase taxpayer investment returns.
In recent years, the U.S. government has been continuously promoting the localization of the semiconductor supply chain to enhance supply chain resilience and national security. The CHIPS and Science Act, which came into effect in August 2022, authorizes approximately $280 billion to support U.S. science and technology innovation, with around $52.7 billion specifically allocated to support semiconductor manufacturing, research and talent development, while imposing restrictions on subsidized companies from significantly expanding advanced chip capacity in countries like China, classified as “countries of concern”, to maintain U.S. supply chain security.