The CHIPS Act initiative fits into a broader U.S. push to strengthen domestic semiconductor capabilities, building on prior funding for manufacturing equipment and quantum computing, with officials emphasizing leadership in American semiconductor tech and AI-ready photonics.

Officials say the aim is to create high-quality American jobs and advance photonics for AI and advanced computing, reinforcing U.S. leadership in critical technologies amid competition with China.

The LOI with GlobalFoundries is part of CHIPS Act efforts to bolster critical semiconductor technologies, with the stated goal of expanding U.S.-based production and competitiveness.

The LOI is a preliminary step; turning it into a binding agreement will require further due diligence and negotiations, with investor updates expected around GF’s Q2 2026 earnings call.

GF has launched an ecosystem with partners PsiQuantum, Quantinuum, Diraq, Equal1, and Microsoft Quantum to bring diverse qubit modalities into play.

Aeluma’s photonics platform targets supply chain constraints by enabling scalable production of high-speed photodetectors and lasers for AI interconnects, networking, and sensing.

The LOI focuses on scaling Aeluma’s platform using large-diameter substrates up to 300mm to support high-speed photonics and address AI interconnect needs.

GF will use facilities in Malta, New York, and Burlington, Vermont to create a U.S.-based path to high-volume silicon photonics manufacturing, leveraging the SCALE platform and advanced packaging.

Work at GF campuses will advance silicon photonics and 3D hybrid bonding, with the awards aimed at expanding U.S.-based production of next-generation optical interconnects.

The funding is designed to accelerate GF’s SCALE platform and related technologies, expanding U.S. manufacture of optical interconnects at GF’s U.S. sites.

As part of the LOI, the U.S. Department of Commerce would receive an equity stake of about 1% in GlobalFoundries, giving the public a stake in the company’s growth.

The equity arrangement reflects a government stake in GF as part of the award, tying public interests to the company’s long-term success.