US chipmaker GlobalFoundries will receive $300 million from the government in exchange for 1% of its equity in the Trump Administration’s latest attempt to boost the domestic chip industry.

The New York-headquartered company said it had signed a letter of intent with the US Department of Commerce to boost its research into silicon photonics technology with funds from the US CHIPS Act.

CEO Tim Breen said the company has the “technology, footprint and ecosystem” to lead the shift from copper to optical interconnects, adding “we have the proven manufacturing foundation to scale it."

The company currently has a market cap of around $26.90 billion, meaning buying 1% of its shares on the stock market would cost $269 million, less than its government award.

While based in New York, it has several offices in the US, Europe and Asia, including in China, Taiwan, the Netherlands, and California, and has invested heavily in manufacturing sites in Germany and Singapore.

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