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U.S. to Take $150M Stake in xLight Under CHIPS Act, Raising Conflict-of-Interest Questions

The Commerce Department will authorize up to $150 million in CHIPS Act incentives for xLight and, in exchange, take $150 million in equity—likely making the U.S. government the company’s largest shareholder. xLight develops EUV lithography equipment seen as essential for next-generation semiconductors. Critics say the move contradicts anti-socialism rhetoric and raises questions about potential conflicts of interest given the president’s family tech ties; supporters argue it secures strategic chipmaking capability.

06:17 AM, 12/04/2025Politics
U.S. to Take $150M Stake in xLight Under CHIPS Act, Raising Conflict-of-Interest Questions

The Commerce Department announced it will authorize up to $150 million in incentives for xLight under the CHIPS and Science Act and will receive $150 million in equity in the company in return. The move could make the federal government xLight’s largest shareholder, according to reporting from The Wall Street Journal.

xLight is developing extreme ultraviolet (EUV) lithography equipment considered key to producing the next generation of advanced semiconductors. Supporters say the investment targets critical national capabilities in chip manufacturing; critics say the purchase clashes with the administration's anti-socialism rhetoric and raises ethical questions about potential conflicts of interest.

Details of the agreement

The Commerce Department described the arrangement as an incentive package under the CHIPS and Science Act that converts up to $150 million in federal support into equity in xLight. That equity stake is expected to make the U.S. government a major, and possibly the largest, shareholder in the company.

“This partnership would back a technology that can fundamentally rewrite the limits of chipmaking,” Commerce Secretary Howard Lutnick said, calling the deal an example of “the CHIPS program at its best.”

Reactions and implications

Critics argue the decision is at odds with public statements by administration officials who have decried socialism and resisted expanded government ownership of private enterprises. Observers also note the investment could benefit an industry in which the president and members of his family have existing tech investments, raising questions about whether public funds could indirectly enhance private financial interests.

Proponents counter that government-backed investment is sometimes necessary to secure domestic supply chains for strategically important technologies and to reduce reliance on foreign suppliers. They say targeted public investment in semiconductor tools can accelerate innovation and strengthen national security.

Either way, the transaction underscores tensions between free-market rhetoric and an active industrial policy that uses public capital to support strategic industries.

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