What does it mean when Uncle Sam is one of your biggest shareholders? Chip startup xLight is about to find out

The Trump administration has agreed to invest up to $150 million in xLight, a Palo Alto-based semiconductor startup, through the Commerce Department using funds from the 2022 Chips and Science Act. This investment, in exchange for equity, is expected to make the U.S. government the largest shareholder in xLight, marking the first Chips Act award in Trump’s second term, though the deal remains preliminary. xLight aims to revolutionize chip manufacturing by developing particle accelerator-powered lasers capable of producing more precise and powerful light sources at a wavelength of 2 nanometers, significantly surpassing the current industry leader ASML’s 13.5-nanometer technology. The company is led by CEO Nicholas Kelez, an expert in quantum computing and government labs, with former Intel CEO Pat Gelsinger serving as executive chairman. The government’s involvement has sparked mixed reactions in Silicon Valley, where many investors are wary of state intervention in the tech sector. Venture capitalists express concern about competing against startups backed