The capital, provided under the 2022 CHIPS and Science Act and overseen by the U.S. Department of Commerce, is earmarked for the research and development of a scalable semiconductor platform. Aeluma’s technology specifically moves away from Indium Phosphide, focusing instead on manufacturing processes designed to alleviate supply-chain bottlenecks for network communications and sensing applications.

Despite the morning surge, the company faces a long road to recovery. Prior to this announcement, Aeluma’s stock had shed more than one-third of its market value over the previous twelve months. Executives maintain that the platform remains critical to national security interests, positioning the firm to accelerate domestic production for high-speed AI interconnects.