Washington’s portfolio has grown…
The Commerce Department announced agreements this week with seven semiconductor companies for $874 million in CHIPS Act funding.
In exchange for part of that support, the government is set to receive minority equity stakes in six additional chipmakers.
That would bring Washington’s growing collection of corporate holdings to roughly 30 companies, according to a Cato Institute tally.
And this portfolio stretches well beyond semiconductors. We’re talking steel, nuclear energy, rare earths, and other strategically important industries.
There’s also a pretty good reason Washington might be warming to the strategy.
Here’s the full picture. ⇩
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Meet The Seven.
1 GlobalFoundries — $300M – Co-packaged optics that could move data between AI processors using light, with the funding intended to accelerate development by 2–3 years.
2 Kepler — $245M – Next-generation AI memory built around 3D and ferroelectric technologies, aimed at improving performance as AI systems demand more memory.
3 Multibeam — $140M – Advanced chip-packaging technology designed to stack and connect multiple chips into more powerful computing systems.
4 Extropic, Thintronics, OBSIDIA & Aeluma — $30M–$75M each – A mix of lower-power computing, advanced semiconductor materials, and technology designed to detect counterfeit components.
The government isn’t simply writing checks. As National Institute of Standards and Technology (NIST) explained, each award comes with a minority, non-controlling equity stake intended to give taxpayers some participation in the upside.
Exactly how much ownership? That’s still TBD.
These are currently letters of intent, and the final equity stakes haven’t been disclosed. Those details are expected to be worked out before the awards are finalized in the months ahead.
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Three Times…
✱ GlobalFoundries has now received federal semiconductor funding three separate times—and the evolution of those deals shows just how much Washington’s approach has changed.
→ November 2024 — $1.5B – Funding to expand manufacturing facilities in Malta, New York, and Vermont. No government equity stake.
→ May 2026 — $375M – Part of a broader quantum-computing funding round. This time, the government received roughly a 1% stake in GlobalFoundries.
→ July 2026 — $300M – This week’s investment in co-packaged optics R&D. An equity stake is part of the deal, though the government’s eventual ownership percentage hasn’t been disclosed.
GlobalFoundries offers perhaps the clearest example of Washington’s shift: federal support once came primarily as funding. Increasingly, it comes with ownership attached.
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The Flagship Example ↓
If Washington needed a reason to keep taking equity, Intel has provided a rather compelling one.
The stock has climbed to record highs since the government’s investment was announced, leaving its stake sitting on more than $70 billion in unrealized gains.
The broader debate over whether the government should own pieces of private companies isn’t going away.
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It’s Not Just Chips…
Washington’s portfolio is starting to look diversified.
And that’s before adding semiconductors and quantum computing.
The government now holds interests across chips, quantum computing, steel, nuclear energy, and rare earths—industries Washington considers strategically important to U.S. manufacturing, technology, energy, or national security.
The common thread is increasingly equity.
Instead of providing capital and walking away, Washington is beginning to structure more deals so taxpayers retain a piece of the companies receiving it.
Industrial policy is starting to come with a cap table.
⚠️ Not Everyone Is Buying The Strategy.
The equity approach has critics.
The disagreement comes down to the government’s role in private markets.
→ Free-market critics argue that government should fund strategic priorities without becoming a shareholder.
→ The administration sees it differently: if taxpayer dollars are already going into private companies, taxpayers should have a chance to participate in the upside.
Intel’s gains strengthen the financial case. They don’t resolve the broader policy debate.
With roughly 30 companies now in the mix, this is becoming more than a handful of unusual deals. It’s an evolving model for how Washington supports industries it considers strategically important.
Whether that ultimately proves to be smart taxpayer stewardship, useful industrial policy, or a significant expansion of government ownership will depend largely on what happens to those investments from here.
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