Public-private tech partnerships in an uncertain fiscal setting
Lately, I’ve been thinking about how high-potential R&D ventures in the U.S.—especially those in infrastructure-related areas like energy, semiconductors, AI, and supply chains—can continue to collaborate with federal agencies, even as budgets tighten and funding becomes less predictable.
The strength of the global engineering ecosystem relies on steady progress in American innovation. To keep that momentum going, we need strong, flexible partnerships between government and industry. Supporting tech for good movement (or whatever label we want to put on it) starts with making sure there are clear, reliable pathways to secure funding.
Clark Street Associates, a Bay Area consultancy focused on helping companies access government programs, recently hosted a webinar that touched on this topic: Key U.S. Government Opportunities for Global Semiconductor Companies Post-CHIPS 1.0.
Here were some of the takeaways:
Onshoring remains a top priority—regardless of politics. Even with opposition to the CHIPS Act's branding, the current administration continues to back domestic semiconductor manufacturing through defense spending and rebranded initiatives like the Investment Accelerator.
Engagement is everything. Across multiple speakers, the advice was clear: if companies aren’t engaging federal decision-makers early and often, they risk being excluded. As one panelist put it, “If you’re not at the table, you’re on the menu.”
State-level partnerships amplify federal impact. States that bring incentives to the table alongside federal funding can increase their odds of landing major projects—especially in business-friendly regions.
Defense budgets may outpace CHIPS. The Department of Defense has historically spent ~$10B annually on microelectronics—more than CHIPS has disbursed in total—and this trend is expected to continue, potentially with fewer bureaucratic hurdles.
The supply chain is under renewed scrutiny. While CHIPS funding went to large fabs, panelists warned that critical gaps in upstream and downstream supply chain infrastructure still require urgent attention, especially in areas like substrates, packaging, and advanced materials.
Debt financing is becoming more attractive. Agencies like the Office of Strategic Capital (OSC) are offering flexible capital to scale national security-critical tech, with modest financial hurdles and growing appropriations support.
Dual-use technologies are a strategic sweet spot. Companies that can demonstrate commercial and defense relevance—especially in AI and quantum—are more likely to attract funding and government support.
AI’s infrastructure challenge is top of mind. The growing energy demands of AI data centers are creating opportunities for chipmakers focused on power-efficient architectures, with potential funding pathways through DOE and national infrastructure programs.
CHIPS funding isn’t over—but it’s evolving. Billions remain unallocated, and a new Investment Accelerator is being staffed up. Companies should track it closely and be proactive in aligning their projects with national security and economic goals.
Appropriations may offer a faster route than CHIPS. Annual defense appropriations represent a recurring, well-established channel—potentially less bureaucratic and more stable than one-time initiatives like CHIPS.
More details about the webinar, which ran on April 29, 2025, including the virtual event agenda, are on the Zoom registration site. Thank you to the team at Clark Street for these informative insights. I look forward to deepening my understanding of these topics.