The United States Commerce Department plans to provide up to $389 million in research and development funding to four companies working on advanced power semiconductors and critical materials, in an effort to strengthen domestic technology and support emerging industries such as commercial fusion.
The department announced the planned awards on Thursday, October 22, 2026, saying the funding will support technologies considered important to America’s energy and semiconductor supply chains.
As part of the agreements, the US government will receive minority equity stakes in the companies. The stakes will be non controlling and non voting, giving the government a financial interest without direct control over the businesses.
Commerce Secretary Howard Lutnick said the investments would help accelerate US semiconductor innovation and strengthen domestic energy and power capabilities.
The funding comes from a $10 billion semiconductor research and development programme approved by Congress in 2022. The Commerce Department said it has awarded 19 research and development grants to semiconductor companies from the programme in recent months.
Washington based fusion company Helion is expected to receive up to $175 million to develop high voltage power semiconductors and advanced energy modules for fusion power generation. The company said the award will also be supported by $50 million in new private investment.
Massachusetts based Commonwealth Fusion Systems will receive up to $85 million for semiconductor technologies used in radio frequency plasma heating, power electronics, fusion diagnostics and radiation hardened electronics. The company said the research could also support robotic systems designed to maintain future fusion facilities.
Vertical Semiconductor, a startup spun out of the Massachusetts Institute of Technology, will receive up to $73 million to develop vertical gallium nitride power semiconductors for artificial intelligence data centres.
The company said the technology could improve energy efficiency and power density in AI data centres and other critical infrastructure while helping expand US production capacity.
Sibelco North America is set to receive up to $56 million to develop advanced purification methods for ultra high purity quartz, a material used in semiconductor manufacturing. The project will include a demonstration facility in North Carolina.
The planned awards reflect Washington’s broader effort to reduce supply chain vulnerabilities, expand domestic semiconductor production and support technologies considered strategically important to the US economy.
The investments also highlight the growing connection between semiconductor innovation, artificial intelligence and next generation energy technologies, particularly as demand for computing power continues to increase.
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