Commerce signs $389m in power-semiconductor R&D letters of intent

The Commerce Department signed letters of intent with four companies to provide up to $389 million in federal R&D awards for power semiconductors, Data Center Dynamics reported on Oct. 23. Fusion developers Helion and Commonwealth Fusion Systems are among the recipients.

Helion, described as Microsoft-backed, would receive up to $175 million for high-voltage power semiconductors and power modules built for high-peak-current pulsed-power applications in fusion generation. Those devices would power, control and harvest energy from the magnets that drive Helion's generators, according to the company. Helion said more than $100 million would support semiconductor and advanced packaging R&D in Everett, Washington, and a further $80 million would go to next-generation semiconductor tooling, design and process development; the two buckets total more than $180 million, above the stated ceiling.

For allocators holding fusion exposure through private funds, the diligence question is how much of a developer's power-electronics budget is grant-funded and how much needs equity. The $175 million and $85 million are capped R&D awards routed through the CHIPS Research and Development Office and aimed at semiconductors and packaging, not at plant construction. Helion's CEO, David Kirtley, said the award and additional private investment total $225 million, which would let the company develop and manufacture the devices in the United States.

CFS, described as Google-backed, would get $85 million to develop semiconductors for robotic maintenance systems intended to improve ARC plant performance and to improve radio-frequency power generators that support commercial fusion. Its proposed ARC plant has a planned capacity of 400MW and is expected to deliver electricity to the grid in the early 2030s. The report names two of the four companies that signed letters of intent.