Trump Administration Expands Equity Investments in Six Semiconductor Companies

The Trump administration in the United States is expanding its investment approach by securing minority equity stakes in six semiconductor companies in exchange for government support funds. As a result, the number of companies in which the U.S. government holds equity will increase to 30, and the direct investment model of the government will spread across national strategic industries such as semiconductors, quantum computing, nuclear power, and rare earths. On the 31st, the U.S. Department of Commerce announced that it had signed a Letter of Intent (LOI) to provide up to $87.4 million in CHIPS and Science Act funding to semiconductor companies. The companies receiving support must provide the government with minority non-controlling stakes. This funding utilizes resources from the CHIPS and Science Act enacted in 2022 and has shifted from the Biden administration's grant distribution method to a model that secures equity. The target companies include Kepler, MultiBeam, Extropic, Synthronics, Obsidian Semiconductors, and Ailuma, with support amounts ranging from $30 million to $245 million. GlobalFoundries will receive an additional support of up to $300 million through a separate contract. The Trump administration is expanding direct government investments to enhance national security and supply chain resilience, with investment cases in Intel being evaluated positively.

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