EL7.AI
Macro EconomyMedium•22 October 2026•
1 min read

US Commerce Department Awards $389M for Semiconductor and Critical Materials R&D

Key Facts

1The US Commerce Department plans to award $389 million in R&D funding to four companies working on power semiconductor devices and critical materials.
2The Commerce Department will receive minority equity stakes in the funded companies as a condition of the award.

The US Commerce Department plans to award $389 million in R&D funding to four companies working on power semiconductor devices and critical materials. Yahoo! Finance Canada reported that the investment aims to accelerate domestic semiconductor innovation and enhance American energy and power resources.

The Commerce Department will receive minority equity stakes in the funded companies as a condition of the award. This initiative to secure critical material supply chains follows data showing US Industrial Production grew by 0.7% on October 16, 2026, exceeding the forecast of 0.4%.

The US Manufacturing PMI is scheduled for release on October 23, 2026, with a forecast of 55.5. Additionally, the Federal Reserve interest rate decision is expected on October 28, 2026, which may impact financing costs for technology and R&D firms.