Trump Administration Reinvests in 6 Chip Firms, Equity Portfolio Set to Expand to 30 Companies

The Trump administration is significantly expanding its equity stake in private enterprises. This week, it announced preliminary agreements with seven companies under the CHIPS and Science Act, committing up to $874 million in research and development incentives to advance critical technologies such as artificial intelligence (AI), advanced packaging, optical interconnects, and semiconductor security.

The recipients include GlobalFoundries (GFS-US) and six other semiconductor firms.

Of these, six newly included companies will receive government aid in exchange for "minority, non-controlling equity." GlobalFoundries, meanwhile, secured a second round of funding after reaching a quantum computing-related agreement with the U.S. government in May.

If these deals are finalized over the coming months, the total number of companies in which the U.S. government holds direct or indirect equity stakes will rise to 30, according to Tad DeHaven, a researcher at the Cato Institute.

DeHaven noted that the most significant aspect of this announcement is that government ownership of private firms is becoming increasingly normalized. The Trump administration is shifting from being a traditional grant provider to a "national-level shareholder" actively participating in corporate investment.

### $874 Million Allocated Across Seven Firms

The funds will be distributed among GlobalFoundries, Kepler Computing, Multibeam Corporation, Extropic, Thintronics, OBSIDIA Semiconductors, and Aeluma, with individual allocations as follows:

- **GlobalFoundries (GFS-US)**: Up to $300 million to accelerate co-packaged optics technology, integrating photonic components directly near AI processors to enhance data transfer speed and energy efficiency. - **Kepler Computing (private)**: Up to $245 million to develop high-performance AI memory using 3D architecture and ferroelectric technology. - **Multibeam Corporation (private)**: Up to $140 million to develop multi-beam electron beam lithography and advanced packaging technologies, supporting chip stacking, heterogeneous integration, and high-density interconnects. - **Extropic (private)**: Up to $75 million to develop Thermodynamic Sampling Units (TSUs), leveraging natural thermal fluctuations for probabilistic computing, aiming to process generative AI, simulations, and optimization tasks with lower energy consumption. - **Thintronics (private)**: Up to $50 million to develop ultra-low-loss interlayer dielectric materials for high-performance computing, AI, high-speed networking, and advanced packaging. - **OBSIDIA Semiconductors (private)**: Up to $34 million to develop non-invasive chip verification systems that detect counterfeit or maliciously altered semiconductor components, strengthening supply chain security for AI and advanced electronics. - **Aeluma (ALMU-US)**: Up to $30 million to develop large-area substrate technology without indium phosphide, enabling production of photodetectors and laser components essential for AI optical interconnects.

Among these firms, only Aeluma is publicly traded; the remaining five new entrants are privately held startups. The letters of intent require final negotiations, and the exact equity stakes to be acquired by the government have not yet been disclosed.

U.S. Secretary of Commerce Lutnick stated that these strategic investments will strengthen domestic industrial capacity, create high-paying jobs, and maintain America's leadership in the global semiconductor industry.

### From Grants to Equity: Trump Shifts Biden-Era Chip Policy

This approach marks a clear departure from the implementation of the CHIPS and Science Act under the Biden administration. Enacted in 2022 and signed by President Biden, the original law primarily provided grants to support semiconductor facility construction and expansion in the U.S., without requiring equity stakes.

The Trump administration has since restructured this model, converting part of the financial assistance into equity investments. To date, 18 semiconductor and related firms have publicly disclosed agreements linking government funding to equity acquisition.

The administration emphasizes that these transactions are not mere corporate subsidies but aim to simultaneously strengthen national security, build domestic supply chains, and generate returns for taxpayers.

### Expanding Investments from Chips to Steel, Nuclear, and Rare Earths

The U.S. government's equity involvement now extends beyond semiconductors. Over the past year, the Trump administration has broadened its investment scope to include quantum computing, steel, nuclear energy, and rare earths—strategic sectors vital to national competitiveness.

In quantum computing, the administration announced investments in multiple firms in May, including funding for a new venture launched by IBM (IBM-US), in exchange for equity. Despite uncertainties about near-term commercialization, quantum computing is viewed as a cornerstone of technological supremacy.

In the steel sector, the U.S. government secured a "golden share" with special veto rights during the approval of Nippon Steel's (NPSCY-US) acquisition of U.S. Steel, allowing influence over key corporate decisions.

In nuclear energy, the government holds approximately 8% equity in Westinghouse Electric, supporting the development of nuclear supply chains and infrastructure.

### Intel Investment Generates Over $70 Billion in Paper Gains

The most prominent corporate investment under the Trump administration remains Intel (INTC-US). Since the deal was announced in August last year, Intel's stock price has reached record highs, resulting in unrealized gains exceeding $70 billion on the government's stake.

Trump recently celebrated the investment on Truth Social, calling it a successful transaction for the American people and citing Intel's stock performance as proof that government equity investments in strategic industries can achieve both policy goals and financial returns.

In the rare earths sector, the U.S. government has invested over the past year in magnet manufacturer Vulcan Elements, miner MP Materials, and USA Rare Earth. It now holds stakes in at least five rare earth companies, with ownership ranging from 5% to 15%.

These transactions follow a consistent pattern: providing capital to small, high-risk but strategically valuable startups in exchange for partial equity.

With the advancement of new semiconductor agreements, the Trump administration is gradually building a national investment portfolio spanning chips, quantum computing, steel, nuclear energy, and rare earths. Whether this strategy can simultaneously strengthen U.S. supply chains and deliver sustained financial returns will be a key focus of Washington’s industrial policy in the coming phase.