The Department of Commerce has allocated over $870 million in federal incentives for semiconductor manufacturing, securing a minority equity stake in seven companies. This move was announced through a blog post by the National Institute of Standards and Technology (NIST) and falls under the CHIPS and Science Act.

NIST disclosed that the financial support, totaling $874 million, will advance research and development in critical technologies and integrated photonics, which uses light rather than electricity to process and transfer data. It will also support research in computing architectures and memory systems for artificial intelligence.

NIST stated, “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.”

Funding allocations include up to $300 million to GlobalFoundries, a semiconductor manufacturer, and up to $245 million for Kepler, which focuses on AI memory and logic technologies. Multibeam Corp. will receive up to $140 million for semiconductor equipment manufacturing, with the rest distributed among equipment makers Extropic, Thintronics, Obsidia Semiconductors, and Aeluma Inc.

Commerce Secretary Howard Lutnick emphasized these investments will enhance U.S. domestic capabilities and create high-paying jobs. According to Lutnick, “These strategic investments will enhance our country’s domestic capabilities, create high-paying jobs, and keep America at the forefront of the semiconductor industry.”

For further details, readers are encouraged to examine the full report at TheHill.com.