US Commerce Department Plans $389 Million in R&D Funding for Power Semiconductors, Taking Minority Stakes in Four Firms

The U.S. Commerce Department said Thursday it plans to award up to $389 million in research funding to four companies developing advanced power semiconductors and critical materials, with the government taking minority equity stakes in the recipients as a condition. Fusion developer Helion would receive the largest award at up to $175 million to develop high-voltage power semiconductors and advanced power modules. Commonwealth Fusion Systems would get up to $85 million for semiconductors used in plasma heating, power electronics and radiation-tolerant equipment. Vertical Semiconductor would receive up to $73 million to develop vertical gallium nitride power semiconductors for AI data center racks, while Sibelco North America would get up to $56 million for ultra-high-purity quartz purification and a demonstration facility in North Carolina. Letters of intent are signed but final agreements are pending. The government stakes carry no control or voting rights. The awards draw on a $10 billion semiconductor research program Congress approved in 2022; Commerce has issued 19 such grants in recent months.