The U.S. Department of Commerce has signed letters of intent with four companies for up to 389 million dollars in federal research and development awards, targeting the power semiconductors and critical materials that sit underneath AI data centers, the electric grid and emerging fusion power plants.
The awards, announced on October 22 under the CHIPS and Science Act and made through the CHIPS Research and Development Office, are not final grants. Under the final awards, each company will conduct research on power semiconductor devices, modules and materials that Commerce describes as essential to the semiconductor supply chain. In a notable condition, the Department will receive a minority, non-controlling and non-voting equity stake in each company, which it says is intended to enhance the return for the U.S. taxpayer.
The largest award goes to Helion, which will receive up to 175 million dollars to develop, scale and establish domestic capabilities in high-voltage power semiconductors and advanced energy power modules designed for high-peak-current pulsed-power applications in fusion power generation. Commerce said those semiconductors will power, control and harvest energy from the magnets driving Helion's fusion generators. Data Center Dynamics reported that Helion expects more than 100 million dollars of the work to support semiconductor and advanced packaging research in Everett, Washington, with further funding for next-generation semiconductor tooling, design and process development, and that the award combined with additional private investment totals 225 million dollars.
Commonwealth Fusion Systems will receive up to 85 million dollars for research to develop semiconductors for radio-frequency plasma heating, power electronics, embedded electronics for fusion diagnostics, and radiation-hardened electronics. Its chief executive, Bob Mumgaard, called the award an important opportunity to drive development of semiconductors and power electronics unique to the fusion industry.
For enterprise computing, the most direct award is Vertical Semiconductor's. The MIT spin-out will receive up to 73 million dollars to advance its vertical gallium nitride power semiconductors, enabling more efficient and compact power delivery for advanced computing, and to demonstrate the technology for what Commerce called the world's first 2.5 megawatt super intelligence data center rack. In its own announcement, the company said power is the most significant bottleneck in the build-out of AI infrastructure, and that its vertical GaN work is intended to expand American compute capacity within existing power constraints.
The fourth award addresses a material most chip buyers rarely think about. Sibelco will receive up to 56 million dollars to develop next-generation purification and finishing technologies for ultra-high-purity quartz used in crystal growth crucibles, processing glassware and other hardware throughout the semiconductor value chain. Commerce said that work will provide next-generation ultra-high-purity quartz materials to advance the domestic semiconductor supply chain.
Commerce framed the package as a power story as much as a chip story. Improvements in power converter performance, the Department said, can drive higher power efficiency, enhanced grid stability and reduced thermal losses, while developing these capabilities domestically will reduce reliance on overseas manufacturing. Secretary of Commerce Howard Lutnick said the investments expand domestic research, secure critical supply chains and create high-paying American jobs. Bill Frauenhofer, the Department's executive director of semiconductor investment and innovation, said accelerating domestic research across these technologies will strengthen America's ability to convert and deliver power for the grid, advanced data centers, defense systems and emerging fusion energy.