Helion Signs $175 Million CHIPS Funding LOI to Advance Fusion Semiconductor Technology

US fusion energy company Helion has signed a letter of intent with the Department of Commerce for a potential federal award of up to $175 million to advance the development and domestic manufacturing of high-voltage semiconductors for fusion energy systems. Announced on 22 October 2026, the proposed funding will be provided through the CHIPS Research and Development Office and is expected to be accompanied by $50 million in additional private investment, bringing the total planned funding package to $225 million. The investment is intended to strengthen US semiconductor manufacturing capabilities while supporting Helion's efforts to develop commercial fusion power technology.

Helion's fusion systems rely on high-power electrical components capable of repeatedly switching and recovering substantial amounts of energy during operation. According to the company, semiconductors meeting its performance requirements are currently available only from overseas manufacturers, creating supply chain risks as it works towards commercial deployment. The proposed investment will support the development of next-generation semiconductor devices designed to deliver higher efficiency, longer operating lifetimes and improved cooling performance. David Kirtley, CEO of Helion, described the initiative as "an important investment in both America's semiconductor manufacturing base and the future of commercial fusion."

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More than $100 million of the planned funding will support semiconductor research, advanced packaging and power module manufacturing capabilities at Helion's facility in Everett, Washington. The project is expected to support more than 100 jobs and develop technologies for integrating multiple semiconductor devices into efficient power modules suitable for larger-scale production. Approximately $80 million will support research into semiconductor tooling, design and manufacturing processes in collaboration with an industry partner in Burlington, Vermont. Additional funding will target packaging improvements and manufacturing automation.

The announcement forms part of a broader US Department of Commerce initiative involving four companies and up to $389 million in proposed CHIPS research and development awards. Alongside Helion, the programme includes potential funding for Commonwealth Fusion Systems, Vertical Semiconductor and Sibelco, supporting technologies relevant to fusion energy, advanced computing and semiconductor manufacturing. The Department of Commerce has stated that domestic development of advanced power electronics could improve energy efficiency, grid stability and the reliability of critical energy infrastructure.

Under the proposed agreement, the Department of Commerce would receive a $175 million non-voting equity interest in Helion, based on the valuation associated with its Series G preferred stock. The funding announcement follows the company's progress on its Orion fusion power plant and earlier research milestones involving deuterium-tritium fusion. However, the letter of intent does not constitute a final funding award, and the project has not demonstrated commercial electricity generation. The proposed investment aims to address a key technology and supply chain challenge as Helion works towards scaling fusion energy systems.

Source: Helion