U.S. Commerce Department Expands Government Equity Stakes to 30 Companies

The U.S. Commerce Department announced that it will take minority, non‑controlling equity stakes in six additional companies as a condition for receiving up to $874 million in CHIPS and Science Act research and development incentives. This move brings the total number of firms with government ownership to 30.

The stakes are part of a broader policy shift that began under the Trump administration, which requires award recipients to provide equity, warrants, royalties or other instruments to generate a return for taxpayers. By contrast, the Biden administration had previously awarded CHIPS funds without taking ownership positions. One of the new companies, GlobalFoundries, already has a proposed Commerce stake linked to a separate $375 million quantum‑foundry award. Critics argue that the government’s dual role as regulator, customer, financier and shareholder could distort competition and create incentives to protect its investments with additional taxpayer support.