The US Commerce Department plans to award up to USD 389 million in research and development funds to four companies working on power semiconductors and critical materials. The proposed awards will support technologies for fusion energy, AI data centers and advanced chip manufacturing.
In return for the funding, the department will take minority, non-controlling and non-voting equity stakes in the companies. The awards are part of the USD 10-billion R&D fund approved by Congress in 2022. Commerce has now announced 19 semiconductor R&D grants in recent months.
Fusion-energy company Helion is set to receive the largest award of up to USD 175 million. The funds will support high-voltage power semiconductors and advanced energy power modules for commercial fusion generation.
Helion has also signed a letter of intent for the award, which is expected to attract USD 50 million in additional private investment. The company plans to use the combined USD 225 million to develop and manufacture advanced semiconductors in the United States.
More than USD 100 million will fund semiconductor research, advanced packaging and manufacturing capability in Everett, Washington. The project is expected to create over 100 jobs. Another USD 80 million will support tooling, design and process development in Burlington, Vermont.
Commonwealth Fusion Systems is expected to receive up to USD 85 million. The company will use the funds to develop semiconductors for radio-frequency plasma heating, power electronics, fusion diagnostics and radiation-hardened systems.
Vertical Semiconductor will receive up to USD 73 million to accelerate research on vertical gallium nitride, or GaN, power transistors. These components can support high-efficiency power delivery in AI data center racks, where energy demand and thermal management are major challenges.
The awards reflect Washington’s effort to connect semiconductor innovation with energy infrastructure. Power semiconductors control electricity flow in grid systems, industrial equipment, electric vehicles and data centers. Their performance directly affects energy efficiency and system reliability.
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