The US government is poised to become a shareholder in a semiconductor startup chaired by Pat Gelsinger, who ran Intel until his resignation last year.
The Commerce Department said on Monday that the Trump administration signed a nonbinding letter of intent to invest up to $150 million in xLight, a startup trying to build a more advanced and cost-effective way to manufacture chips.
The investment would come from the CHIPS and Science Act and would be structured as equity, giving the federal government direct ownership in the company.
The deal — a first from the Trump administration’s CHIPS Research and Development Office — signals Washington’s effort to regain leadership in chipmaking. Most advanced semiconductors are manufactured outside the US, led by TSMC in Taiwan and Samsung in South Korea — areas where China’s influence looms large.
Intel warned in July that it may halt development of its next-generation chip, 14A, due to financial reasons. If Intel gives up on 14A, this could be a death blow to US chip manufacturing, Business Insider’s Alistair Barr wrote in a July report.
US Takes Stake in Chip Startup Chaired by Intel’s Ex-CEO
