The U.S. government invests $150 million in a chip startup, why is Silicon Valley in an uproar?

[Coin World] The U.S. Department of Commerce recently did something significant – it invested $150 million in the semiconductor new force xLight, marking the government's third time doing this. Where did the money come from? It's from the funding pool allocated by the “CHIPS Act” passed in 2022.

In simple terms, they are targeting the most hardcore technology in chip manufacturing: particle accelerator lasers. The goal is aimed directly at 2-nanometer processes, clearly indicating an intention to compete with industry giant ASML.

This matter has caused a stir in Silicon Valley. Some believe that the government should not interfere with private enterprise operations and that market issues should be resolved by the market itself. However, Commerce Secretary Raimondo does not think so; she made her stance clear: when it comes to national security and technological leadership, action must be taken when necessary.

Behind this operation lies the reality of an intense competition in technology. Should the market be allowed to operate freely, or should the state intervene forcefully? This debate is unlikely to have an answer in the short term.