Helion, an Everett, Washington-based fusion energy company, has signed a letter of intent with the U.S. Department of Commerce for up to $175 million in proposed funding under the CHIPS and Science Act. Together with an additional $50 million in private investment, the initiative would support approximately $225 million in research and development focused on advanced semiconductor technologies needed for commercial fusion energy.
The proposed federal funding would be administered through the Department of Commerce’s CHIPS Research and Development Office and support domestic research, semiconductor manufacturing, advanced packaging, and specialized equipment development.
Helion is developing fusion energy systems that use high-power electrical pulses to generate and recover energy. These systems require specialized power semiconductors capable of rapidly switching substantial amounts of electricity while maintaining efficiency, reliability, and long operating lifetimes.
According to Helion, semiconductor devices meeting its technical requirements are currently available only from overseas manufacturers. Developing domestic production capabilities would help the company reduce supply chain dependencies while supporting the commercialization of its fusion technology.
The proposed funding will support research into next-generation high-voltage semiconductors designed to deliver improved electrical efficiency, longer operating lifetimes, and more effective cooling.
More than $100 million of the investment will support semiconductor and advanced packaging research and development in Everett, Washington.
The work is expected to establish substantial power module manufacturing capabilities in the state and support the creation of more than 100 jobs.
A central component of the project involves developing advanced semiconductor packaging techniques that integrate multiple devices into efficient, scalable power modules.
These modules are expected to support the demanding electrical requirements of Helion’s fusion systems, which must repeatedly manage and recover substantial amounts of energy.
Approximately $80 million will support research into semiconductor tooling, design, and manufacturing processes in collaboration with an industry partner in Burlington, Vermont.
The initiative is intended to expand domestic capabilities for producing specialized semiconductor technologies that are important for commercial fusion power plants.
The remaining project resources will support additional improvements in semiconductor packaging and manufacturing automation.
Beyond fusion energy, the technologies being developed could have applications in electrical grid transmission, defense systems, and other industries requiring efficient management of high-power electrical systems.
The proposed federal award follows several developments in Helion’s fusion energy program during 2026.
The company previously secured $500 million in Series G funding and reported becoming the first private fusion energy company to demonstrate deuterium-tritium fusion while achieving plasma temperatures of 150 million degrees Celsius.
Helion is also advancing Orion, its first planned fusion power plant, as it works toward commercial deployment of its energy generation technology.
The company expects domestically manufactured power semiconductors to become an important component of its strategy for scaling fusion power generation.
Under the contemplated award structure, the U.S. Department of Commerce would also receive a $175 million nonvoting interest in Helion, based on the company’s most recent Series G preferred stock valuation, upon execution of a definitive award agreement.
The proposed arrangement remains subject to the completion of a final funding agreement.
Helion’s initiative represents an effort to connect federal semiconductor research investment with the development of emerging energy technologies that require specialized domestic manufacturing capabilities.
KEY QUOTES:
“Building fusion power plants at scale requires us to accelerate the development of technologies like semiconductors that are critical to making fusion possible. This award combined with additional private investment, totaling $225 million, will allow Helion to develop and manufacture advanced semiconductors here in the United States that deliver the efficiency, reliability, and performance our systems require. It’s an important investment in both America’s semiconductor manufacturing base and the future of commercial fusion.”
David Kirtley, CEO Of Helion
“The Trump Administration is accelerating American semiconductor innovation to enhance our domestic energy and power resources. This investment expands domestic research, secures critical supply chains, and creates high-paying American jobs.”
Howard Lutnick, U.S. Secretary Of Commerce
“This CHIPS R&D award will support innovation in next-generation semiconductor power modules and devices critical to advancing fusion energy. Accelerating this R&D domestically will support breakthroughs in America’s ability to convert and deliver power to critical applications in defense, grid transmission, and advanced energy generation.”
Bill Frauenhofer, Executive Director Of Semiconductor Investment And Innovation At The U.S. Department Of Commerce
