The U.S. Department of Commerce plans to provide up to $389 million in research and development funding to four companies developing power semiconductors and critical materials, targeting applications ranging from commercial fusion energy to artificial intelligence data centers.
The awards are intended to strengthen domestic semiconductor manufacturing capabilities, improve energy efficiency, and reduce reliance on foreign supply chains. The funding comes from a $10 billion semiconductor R&D program established under the CHIPS and Science Act of 2022.
The largest award, up to $175 million, will go to Helion, a Washington-based fusion energy company. The funding will support development and domestic production of high-voltage power chips and advanced power modules designed for the high-current, pulsed-power systems used in fusion generators. These devices will control and manage the electrical energy associated with the magnets that drive Helion’s fusion technology.
Commonwealth Fusion Systems will receive up to $85 million to develop semiconductor technologies for fusion applications, including radio-frequency plasma heating, power electronics, fusion diagnostics and radiation-hardened electronics. The company is developing commercial fusion power systems and plans to use advanced electronics to support reactor operation and maintenance.
A third award, worth up to $73 million, will support Vertical Semiconductor’s development of vertical gallium nitride (GaN) power devices. The MIT spinout is targeting more efficient, compact power delivery for advanced computing systems, including high-density AI data center racks. Its research aims to improve power efficiency and density while advancing domestic production of next-generation power transistors.
GaN is drawing interest for power conversion because it can switch electrical current rapidly and support compact, efficient power systems. That could become increasingly important as AI servers and accelerator systems demand greater amounts of electricity while imposing strict limits on heat generation and power-delivery space.
The fourth award, worth up to $56 million, will go to Sibelco North America to develop advanced purification and processing technologies for ultra-high-purity quartz for semiconductor manufacturing equipment. This is designed to strengthen the domestic supply for silicon crystals used in chip fabrication.
The four awards reflect the growing overlap between semiconductor technology, energy infrastructure and AI computing. While advanced processors attract much of the industry’s attention, power semiconductors and supporting materials are essential to delivering electricity efficiently to chips, managing heat and maintaining reliable operation.
The awards remain subject to final agreements. If completed, they would direct federal support toward both semiconductor devices and the upstream materials required to manufacture them, broadening the U.S. effort to build a more resilient domestic semiconductor ecosystem.
