US to award $389 million in R&D funds for power semiconductors, critical materials

The awards support four different parts of the power-semiconductor and critical-materials chain. Helion and Commonwealth Fusion Systems are developing semiconductor technologies for commercial fusion. Vertical Semiconductor is advancing gallium nitride power devices for AI data centers. Sibelco North America is improving purification of quartz used in semiconductor manufacturing.

Helion will develop high-voltage semiconductors and energy modules for fusion generators. Commonwealth will work on radio-frequency plasma heating, power electronics, diagnostics, radiation-hardened electronics, and robotic maintenance. Vertical Semiconductor will advance vertical gallium nitride transistors. Sibelco will develop leaching technologies and a demonstration facility for ultra-high-purity quartz.

The Commerce Department has signed letters of intent rather than announcing completed awards. Helion could receive $175 million, Commonwealth up to $85 million, Vertical up to $73 million, and Sibelco up to $56 million. Together, these projects connect fusion, AI infrastructure, and domestic semiconductor production.

The Commerce Department plans to distribute up to $389 million across four companies. Helion is slated for up to $175 million, Commonwealth Fusion Systems up to $85 million, Vertical Semiconductor up to $73 million, and Sibelco North America up to $56 million. The amounts add up to the announced total.

This is targeted research and development funding, not a single company-wide investment. The projects focus on technologies that support fusion power, AI data-center electricity systems, and the semiconductor supply chain. Helion also said its award will be accompanied by $50 million in new private investment funds.

The awards are part of a much larger $10 billion fund approved by Congress in 2022. In recent months, the Commerce Department has awarded 19 R&D grants to semiconductor firms from that fund. The four new awards extend that effort into power devices and critical materials.

A power semiconductor is an electronic device designed to switch, regulate, convert, or deliver electrical energy. It can manage substantial voltage or current. These devices are essential wherever electricity must move efficiently between a source, a circuit, and a load. The article focuses on them because energy systems need specialized hardware, not only computing chips.

Chips used mainly to process information perform calculations, store data, or control software. Power semiconductors instead control the electrical conditions that let equipment operate. Helion plans high-voltage devices and energy modules for fusion generation. Vertical Semiconductor is developing vertical gallium nitride power semiconductors for AI data-center racks.

The distinction is practical, not absolute. Modern systems often combine information-processing chips with power devices. The announced projects show why power technology matters: fusion equipment needs specialized electricity control, while AI data centers need efficient delivery of large amounts of power. Better power devices can support higher efficiency and power density.

Commercial fusion needs more than a successful reaction. It also needs reliable electronics to power magnets, heat plasma, monitor conditions, withstand radiation, and maintain equipment. The article’s awards target several of these needs. Helion is developing semiconductors for magnets driving its fusion generators. Commonwealth is working on heating, diagnostics, radiation-hardened electronics, and robotic maintenance.

The mechanism is better control of energy and equipment. Helion’s semiconductors would power and use energy from its fusion generators. Commonwealth’s technologies could support plasma heating and automated maintenance. These capabilities are intended to help move fusion toward commercial deployment, although the article does not provide a construction timeline or guarantee that commercial plants will result.

AI data centers face intense electricity needs. Vertical Semiconductor says its gallium nitride work could improve efficiency and power density in data-center racks and critical energy infrastructure. The projects therefore support two energy-intensive areas, but their future impact depends on successful research, testing, and domestic production.

The funding agreements require the U.S. government to receive minority, non-controlling, and non-voting equity stakes in recipient companies. “Minority” means the government would own less than a controlling share. “Non-controlling” means it could not direct the companies. “Non-voting” means it would not receive ordinary voting power through those stakes.

The article presents this equity requirement as a condition of the awards, alongside the research funding. It does not say that the government will manage the companies, appoint directors, or direct their technical work. The companies remain responsible for developing their projects, including fusion electronics, gallium nitride devices, and quartz purification.

The specific reason for taking the stakes is not stated in the source. What is clear is that the government is combining public R&D support with a limited ownership interest. The awards are letters of intent, so the final terms and any resulting equity arrangements may still depend on completed agreements.

Ultra-high-purity quartz is important because it is used for key components in semiconductor manufacturing. Semiconductor production requires materials with tightly controlled purity. Unwanted impurities can interfere with manufacturing processes or reduce the reliability of components. The article identifies high-purity quartz as part of the semiconductor supply chain and describes it as a critical material.

Purification technology removes unwanted substances from quartz. Sibelco North America will use its potential $56 million award for next-generation leaching technologies and a demonstration facility in North Carolina. Leaching uses a chemical process to extract impurities from a solid material. The facility will support testing of new quartz products before broader use.

The project could strengthen a domestic source of an important semiconductor input, but the article does not quantify current supply problems or promise a specific production date. It does show the supply chain’s broader reach: improving chips requires advances in materials as well as advances in electronic devices.

Power semiconductor devices manage electricity as it moves through an energy system. They can switch current on and off, adjust voltage, convert alternating and direct current, and route power to a load. This role differs from information processing, where chips primarily calculate or handle data. Power devices are the electrical interface between a source and the equipment that uses energy.

For example, a power module can take electricity from a supply and deliver the voltage and current required by a motor, magnet, processor, or other system. Fast, precise switching controls how much energy reaches the load. Materials such as gallium nitride can support high-frequency or high-power operation; this explanation uses established semiconductor knowledge beyond the article’s specific claims.

When less energy is lost as heat, systems need less cooling and can use smaller components. Higher power density means more electrical capability in less physical space. That is why Vertical Semiconductor connects its gallium nitride work with efficiency and power density for AI data centers, while Helion targets advanced energy modules for fusion.