The Trump administration has agreed to inject up to $150 million into xLight , a semiconductor startup developing advanced chip-making technology, marking the third time the U.S. government has taken an equity position in a private startup and further expanding a controversial strategy that has put Washington on the cap tables of American companies.

The Wall Street Journal reported Monday that the Commerce Department will provide the funding to xLight in exchange for an equity stake that will likely make the government the startup’s largest shareholder. The deal uses funding from the 2022 Chips and Science Act and represents the first Chips Act award in President Trump’s second term, though it remains preliminary and subject to change.

Previous government equity investments under the

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