PsiQuantum Executes Definitive $100 Million CHIPS Act Award with U.S. Department of Commerce

Fault-tolerant photonic quantum computing developer PsiQuantum has finalized definitive documentation with the U.S. Department of Commerce to execute a $100 million federal research and development award under the CHIPS and Science Act. Following the initial Letter of Intent signed in May 2026, the finalized agreement provides direct capital co-investment to accelerate domestic semiconductor process development, advance photonic component manufacturability, and strengthen onshore supply chain security for fault-tolerant quantum computing infrastructure.

The federal funding targets specific component-level manufacturing and material scaling initiatives across PsiQuantum's domestic facility pipeline. Capital allocation will accelerate 300mm wafer production of barium titanate (BTO)—a high-performance electro-optic thin-film material essential for low-loss optical switches—utilizing Molecular Beam Epitaxy tools at its Santa Clara, California facility. In addition, the award supports performance optimization, yield enhancement, and system integration for high-temperature single-photon detectors and automated chip-to-fiber packaging lines operated at its PsiFactory assembly facility in Milpitas, California.

The CHIPS Act deployment complements PsiQuantum's established domestic manufacturing footprint, building on approximately $200 million spent across American suppliers in 2025 and its long-standing semiconductor foundry partnership with GlobalFoundries. Under this collaboration, GlobalFoundries produces PsiQuantum's "Omega" silicon photonic chipsets using standard 300mm wafer manufacturing lines in Malta, New York. Beyond commercial foundry integration, the company maintains active defense research partnerships, including photonic circuit integration programs with the Air Force Research Laboratory (AFRL) and a $125 million expanded tasking under DARPA's Quantum Benchmarking Initiative (QBI).

Review the official press release here, access our previous coverage of the initial U.S. Department of Commerce CHIPS Act Quantum Allocations here, examine our analysis of the PsiQuantum $125 Million DARPA QBI Expanded Agreement here, and read our coverage of GlobalFoundries' Onshore Quantum Hardware Manufacturing Unit here.

September 8, 2026