Aeluma, Inc., the Goleta, California-based semiconductor company listed on Nasdaq under the ticker ALMU, has signed a letter of intent with the U.S. Department of Commerce's CHIPS Research & Development Office for up to USD 30 million in proposed federal funding to accelerate the development of its scalable, non-indium phosphide semiconductor manufacturing platform for photonics.

The announcement, made on July 29, 2026, marks a significant milestone for the company as it seeks to position its technology as a domestic alternative to supply-constrained photonic materials used widely in AI and advanced computing infrastructure.

What the Funding Would Support

The proposed award falls under the CHIPS and Science Act, a federal initiative administered by the Department of Commerce designed to advance semiconductor research and development, strengthen U.S. technology leadership, and accelerate commercialization.

The funding contemplated under the letter of intent would be directed toward advancing Aeluma's non-indium phosphide, large-diameter substrate platform for photonic devices, including high-speed photodetectors and lasers used in next-generation AI interconnects, network communications, and sensing applications.

Indium phosphide, or InP, substrates are currently used to manufacture critical photonic components, but the material carries significant drawbacks. According to Aeluma, InP substrates are relatively expensive, limited in manufacturing throughput, and vulnerable to geopolitical pressures and supply shortages.

Aeluma's approach uses alternative, larger-diameter substrates, up to 300mm, to build high-performance photonics without relying on InP, directly addressing those supply chain vulnerabilities.

The company said the development work outlined in the letter of intent emphasizes manufacturing readiness and scaling of its non-InP photonics, aligning with the CHIPS and Science Act's stated objectives of strengthening domestic semiconductor manufacturing, supply chain resiliency, and national security.

Technology Background

Aeluma describes itself as having pioneered a platform to build high-performance photonics on large-diameter, mismatched substrates. The company characterizes this as a bridge between compound semiconductor materials and mainstream microelectronics manufacturing processes, allowing the scaling requirements of high-growth markets to be met using infrastructure more closely aligned with conventional silicon-based chip production.

The platform is designed to enable volume production and large-scale integration across a range of applications, including mobile devices, AI systems, defense and aerospace, robotics, automotive technology, augmented and virtual reality, and quantum computing.

The funding contemplated under the letter of intent would specifically target the commercialization of Aeluma's high-performance semiconductors for AI and advanced computing markets.

Statements from Company and Government Officials

Jonathan Klamkin, Ph.D., Aeluma's President and CEO, said the award aims to accelerate development and commercialization of the company's scalable, high-performance semiconductor platform, and that it would leverage Aeluma's facilities in Goleta, California, along with partner sites within the United States. He described the growing demand for photonics in AI and advanced computing infrastructure as positioning the company for broad market adoption.

Secretary of Commerce Howard Lutnick framed the investment within a broader policy context, stating that the Trump Administration is accelerating America's innovation engine through compute supply chain investments, and that such strategic investments would enhance domestic capabilities, create high-paying jobs, and keep America at the forefront of the semiconductor industry.

Bill Frauenhofer, the Executive Director for Semiconductor Innovation and Investment at the Department of Commerce, said the CHIPS research and development incentives would support a breakthrough in the manufacturing of photonic devices for compute and communication networks.

He added that accelerating research and development for next-generation substrates for domestic photonic devices provides American industry with the bandwidth and energy efficiency to scale complex AI workloads.

Award Structure and Conditions

The letter of intent does not constitute a final award. Aeluma stated that the funding is subject to the completion of further due diligence, required approvals, including internal approvals from the U.S. Government, and the execution of definitive award documents by both parties.

The letter of intent contemplates a portion of the award being funded upfront, with the remainder disbursed on a milestone-based structure tied to eligible project costs and technical progress.

In connection with executing the final award documents, Aeluma said it would issue equity securities to the U.S. Department of Commerce with an aggregate value equal to the award amount.

The company noted that any securities issued to the Department of Commerce in connection with the proposed award would not be registered under the Securities Act of 1933 and would be issued only pursuant to an applicable exemption from the registration requirements of that Act.

Company Profile and Manufacturing Footprint

Aeluma operates state-of-the-art research, development, and manufacturing capabilities for semiconductor wafer production, quick-turn chip fabrication, and rapid prototyping from its headquarters in Goleta, California.

The company's proprietary platform combines compound semiconductors with scalable manufacturing processes used for mass-market microelectronics, enabling volume production across the range of markets it serves.

The company trades on the Nasdaq exchange under the symbol ALMU and positions itself as a transformative player in high-performance photonic and electronic technologies designed to scale with the demands of emerging technology sectors.

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