Fusion energy company Helion announced it has been awarded $175 million in federal funding. This investment, provided under the CHIPS Act, is designated for the research, development, and manufacturing of advanced semiconductors and power electronics. These components are critical for Helion's fusion power plants.
Current power electronics in Helion's systems lose 5% to 10% of the electricity flowing through them. Helion co-founder and CEO David Kirtley stated that reducing this loss by half could effectively double the power output of a fusion system. The new semiconductors are intended to improve this efficiency.
The funding will support the construction of an automated semiconductor module, packaging, and testing facility in Washington State. This facility will be the first in the U.S. to produce a class of advanced, high-voltage, and pulsed semiconductors used in various sectors, including fusion power, manufacturing, medicine, and defense. Kirtley noted that there are currently no U.S. manufacturers for these specific semiconductors.
Helion is working to complete its first power plant, Orion, to meet a 2028 deadline to supply Microsoft with electricity. While the R&D funded by this award will not be integrated into Orion in time for its initial launch, it is expected to improve the efficiency of subsequent Helion power plants. The company also secured an additional $50 million in private investment, bringing its total funding to over $3.2 billion.
More than $100 million of the federal award will be allocated to semiconductor and advanced packaging R&D in Washington State. Approximately $80 million will support R&D efforts in Vermont for advanced semiconductor tooling, design, and process development in collaboration with GlobalFoundries. GlobalFoundries has also received over $80 million from the federal government for gallium-nitride semiconductor manufacturing, a type used in power electronics.
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Fusion startup Helion received $175 million in federal funding under the CHIPS Act to develop and manufacture advanced semiconductors and power electronics. These new components aim to reduce electricity loss in its fusion power plants, potentially doubling their power output and establishing a new U.S. production line for high-voltage semiconductors.