Commerce proposes $389 million for power chips and materials, with equity stakes attached.
The U.S. Commerce Department announced four letters of intent on October 22. The awards would provide up to $389 million for semiconductor research. Vertical Semiconductor could receive up to $73 million for vertical gallium nitride power devices. Its proposal includes a 2.5-megawatt AI data-center rack demonstration.
These are proposed awards under letters of intent. Commerce would receive a minority, non-controlling, non-voting stake in each company as a condition of the final awards. The announcement funds research, rather than proving that the devices meet their targets or that a rack is operating.
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