Helion Secures $175 Million CHIPS Act Award to Develop Semiconductors for Fusion Plants

Fusion startup Helion announced Thursday it received $175 million in federal funding under the CHIPS Act to research and manufacture advanced semiconductors and power electronics for its fusion power plants. The three-year Department of Commerce award aims to cut electricity losses in its power systems, which currently run 5% to 10%, potentially doubling plant output. "If we can cut that loss in half, that's actually twice the power output of the fusion system," CEO David Kirtley told TechCrunch. Helion also disclosed a fresh $50 million private investment from an undisclosed backer, bringing total funding above $3.2 billion and making it the second-best-funded fusion startup. More than $100 million will fund semiconductor and packaging R&D in Washington State, where Helion will build what it says is the first U.S. production line for this semiconductor class. About $80 million will support R&D in Vermont with GlobalFoundries, which separately received over $80 million from the federal government for gallium-nitride semiconductor manufacturing. Helion is racing to complete its first plant, Orion, by a 2028 deadline to supply Microsoft with grid electricity. Kirtley said the federally funded R&D won't reach Orion in time but will improve efficiency of subsequent plants.