Nasdaq-listed Aeluma (ALMU) announced on Monday it has received more than $4 million in government-backed contracts to support the expansion of its semiconductor platform targeting quantum photonics and high-speed optical communications.

Shares of the semiconductor firm surged about 34% ahead of market open following the news, per Yahoo Finance data.

The funding will be used to advance its heterogeneous integration technology, including quantum dot lasers for AI data centers and co-packaged optics, as well as scalable nonlinear photonic materials designed for quantum computing and sensing applications.

Aeluma highlighted continued collaboration with Tower Semiconductor and Sumitomo Chemical Advanced Technology to improve manufacturing scale, address supply chain constraints, and bring photonic systems closer to commercial deployment across multiple high-growth markets.

Government contracts and technical milestones

Founded in 2019, Aeluma specializes in integrating compound semiconductor materials with silicon manufacturing to deliver scalable, high performance photonic and electronic systems for next generation computing and sensing applications.

The California-based semiconductor firm holds contracts with NASA, the US Navy, and the Department of Energy.

A Navy contract worth up to $1.3 million, awarded in June 2025, funded the development of high-speed photodetectors, components used in defense sensing and secure quantum communications.

At the Optical Fiber Communication Conference 2026, the company demonstrated quantum dot lasers and photodetector arrays built for silicon photonics platforms.

Strong fiscal performance

Aeluma’s revenue grew from $2.71 million in fiscal year 2024 to $4.7 million in fiscal year 2025, a robust 73% increase. The company projects full-year fiscal 2026 revenue between $4 million and $6 million, aiming to build on last year’s record top line.

With $38.6 million in cash on the balance sheet as of December 31, 2025, the company has ample runway to execute its roadmap without immediately tapping equity markets.

The photonic integrated circuits market, which includes the silicon photonics components Aeluma develops, is projected to grow from $14 billion in 2024 to over $25 billion by 2030.

Within this space, the quantum communication segment is expected to reach $5.4 billion by 2030, expanding at a compound annual growth rate of approximately 31.8%.