US to Take $150 Million Stake in Chip Startup Led by Gelsinger

The US Commerce Department has agreed to invest as much as $150 million in xLight Inc., a chip technology startup tied to former Intel Corp. Chief Executive Officer Pat Gelsinger.

The department’s Chips Research and Development Office — a part of the National Institute of Standards and Technology — has signed a nonbinding letter of intent to provide the funding, according to a statement on Monday.

The move is part of Trump administration efforts to bring more chipmaking capabilities back to domestic soil. xLight, where Gelsinger serves as executive chairman, is developing technology that would compete with ...