CHIPS and Science Act

The Trump administration plans to issue executive orders to accelerate the federal government's transition to post-quantum encryption and increase funding for the domestic quantum computing industry. The orders include a new deadline for adopting quantum-resistant encryption by 2029 or 2030 and exclude military networks. The administration also announced over $2 billion in incentives for nine quantum companies under the CHIPS and Science Act.

Nvidia-backed photonics vendor Coherent plans to quadruple indium phosphide (InP) wafer production at its Sherman, Texas, facility to meet rising AI interconnect demand. The expansion, funded by $650 million including Nvidia's $2 billion investment and government grants, aims to double the factory's size and create 1,000 jobs. Nvidia has also invested in Lumentum and Marvell to bolster optical component supply chains for AI systems.

McKinsey estimates the U.S. would need $2 trillion, or 6% of GDP, to rebuild industrial capacity for strategic goods like AI servers and key chemicals. The study highlights gaps in domestic manufacturing and the challenges of scaling up sectors beyond AI, despite recent investments like the CHIPS and Science Act.