US signs letters of intent worth $874 million to boost semiconductor research

US Department of Commerce said on Tuesday it has signed letters of intent to provide $874 million in incentives to seven companies developing semiconductor technologies for AI and advanced computing systems.

The funding, to be issued under the CHIPS and Science Act, is part of a broader U.S. effort to strengthen domestic semiconductor production and reduce dependence on foreign suppliers.

GlobalFoundries will receive up to $300 million for the development of co-packaged optics, which combine light-based data transfer with AI processors for faster computing.

Kepler was allotted up to $245 million for new AI memory technology, while Multibeam Corporation will get up to $140 million for advanced chip-packaging equipment.

Extropic, Thintronics, OBSIDIA Semiconductors and Aeluma will receive amounts ranging from $30 million to $75 million, for projects ranging from lower-power computing technologies and advanced chip materials to systems that detect counterfeit components.

The Commerce Department added it will take minority equity stakes in each company as part of the funding agreements, pending further review before final awards.