US proposes $389 million for chip and materials research
Four companies would receive funding for projects spanning fusion power, AI data centers and quartz processing, with minority equity stakes going to the government.
Helion wins $175 million federal award for fusion power electronics
The startup plans semiconductor production capacity in Washington state, but its CEO says award-funded research will arrive too late for its first plant's launch.
Helion announced a federal funding award of $175 million for semiconductor development and manufacturing tied to its fusion plants. Provided through the Department of Commerce under the CHIPS Act, the funding covers three years.
The startup intends to establish a Washington state production line with automated equipment for making, packaging and testing semiconductor modules. That capacity is intended to supply Orion, its first fusion plant, which is under construction. Helion is targeting 2028 to supply Microsoft with electricity through the grid.
Co-founder and CEO David Kirtley said the award's research work would not be incorporated into Orion before launch, noting that federal contract negotiations can take months. Instead, he said, the research could make later plants more efficient.
Kirtley said more than $100 million would go toward Washington state research involving semiconductors and advanced packaging. Approximately $80 million would support research with GlobalFoundries in Vermont, covering tooling, design and semiconductor processes.
Helion's power electronics lose about 5% to 10% of the electricity flowing through them. Kirtley said cutting those losses by half could double its fusion system's output. The company's approach recovers electricity directly from fusion reactions rather than producing heat to run a steam turbine, making electronics efficiency important to the design.
Alongside the government award, Helion disclosed an additional private investment of $50 million but did not identify its backer. The company has raised more than $3.2 billion.