"The move shows that the government's nearly $9 billion dollar investment in Intel - for 10 percent stake in the company structured as a silent partnership - wasn't a one-off, and that officials are moving forward with plans to buy equity in technology companies it deems critical. As part of the latest deal, the startup will receive tens of millions in exchange for developing a prototype that would use free-laser electron technology to manufacture chips."
"There's also concern that current investments don't reflect a consistent strategy, and could veer into favoritism for political friends. The Trump administration may also be risking taxpayer money as well, since there's no guarantee industrial policy investments will actually pan out. "Is the government really going to be the right shareholder to help these companies succeed? Is the government going to start showing favoritism to these companies over companies that it doesn't own?" Peter Harrell, from the Carnegie Endowment for Peace, recently told PBS."
The Commerce Department signed a letter of intent to buy up to $150 million of xLight, a startup focused on lithography. The investment will fund development of a prototype using free-laser electron technology to manufacture chips, potentially offering an alternative to ASML equipment and enabling production of extremely small transistors. The move follows a nearly $9 billion dollar government investment for a 10 percent silent stake in Intel and signals expanded federal equity purchases in critical technology firms. Conservative economists warn against expanded government ownership, citing risks of favoritism, inconsistent strategy, and potential losses of taxpayer money.
Read at Fast Company
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