The US Department of Commerce has announced plans to provide up to $874m in federal funding to seven technology companies under the CHIPS and Science Act, aiming to accelerate next-generation semiconductor research and strengthen the semiconductor supply chain.
The proposed investments, announced through signed letters of intent, will support research and development across advanced computing technologies, including integrated photonics, AI memory, advanced packaging, semiconductor materials and secure electronics. The awards remain subject to due diligence and final government approval.
Officials say the funding will help expand domestic innovation, reduce reliance on overseas technologies and reinforce the United States’ position in the global semiconductor supply chain while supporting future advances in AI, defence, healthcare, robotics and industrial manufacturing.
Funding targets critical semiconductor technologies
The seven proposed awards focus on technologies considered essential to future AI infrastructure and high-performance computing.
The largest allocation, worth up to $300m, is earmarked for GlobalFoundries to accelerate research into co-packaged optics. The technology integrates photonics directly with AI processors, increasing data transfer speeds while reducing energy consumption. According to the Department of Commerce, the investment could bring commercial deployment forward by two to three years.
Kepler is expected to receive up to $245m to develop a new generation of high-performance AI memory using three-dimensional and ferroelectric technologies. Improving memory performance is viewed as a key requirement for increasingly complex AI workloads.
Meanwhile, Multibeam Corporation has been selected for up to $140m to advance semiconductor packaging technologies that stack multiple chips into a single system. Advanced packaging is becoming increasingly important as manufacturers seek higher computing performance without relying solely on smaller transistor sizes.
Supporting the future of AI infrastructure
Several smaller awards focus on technologies designed to improve efficiency, connectivity and security across the semiconductor supply chain.
Extropic is set to receive up to $75m to develop thermodynamic sampling units, a computing architecture that uses natural thermal fluctuations to solve complex optimisation, simulation and AI problems while consuming significantly less energy than conventional processors.
Thintronics has been selected for up to $50m to pioneer ultra-low-loss dielectric materials used in advanced semiconductor interconnects and advanced packaging for AI and networking systems.
OBSIDIA Semiconductors is expected to receive up to $34m to develop technologies capable of identifying counterfeit or malicious semiconductor components without damaging devices. The technology aims to improve traceability and strengthen security across increasingly complex supply chains.
Finally, Aeluma will receive up to $30m to advance indium-phosphide-free semiconductor substrate technology for photodetectors and lasers used in AI-enabled photonic interconnects.
Strengthening the semiconductor supply chain
Beyond supporting individual technologies, the investments form part of a broader strategy to build greater domestic resilience across the semiconductor supply chain.
By expanding research capabilities within the United States, the Department of Commerce aims to reduce vulnerabilities linked to overseas production while encouraging the commercialisation of emerging semiconductor technologies.
Many of the funded projects address areas widely regarded as bottlenecks for future AI systems, including packaging, memory performance, photonic communications and secure component verification.
The Department will also receive a minority, non-controlling equity stake in each company receiving funding. Officials say this approach is intended to provide a financial return for US taxpayers while allowing companies to continue operating independently.
CHIPS Act programme remains open
The latest announcements are part of the CHIPS Research and Development Office’s continuing efforts to accelerate innovation across the US semiconductor sector.
The office continues to accept proposals for research, prototyping and commercial projects that advance domestic microelectronics technologies through its current funding programme.
Eligible organisations are invited to submit applications for projects supporting the next generation of semiconductor innovation.
With AI driving unprecedented demand for advanced computing hardware, the new investments are expected to accelerate critical technologies while reinforcing the long-term resilience and competitiveness of the US semiconductor supply chain.
