The US Department of Commerce (DOC) has signed letters of intent with four companies to provide up to $389m in research and development (R&D) funding as part of efforts to bolster the country’s energy-related semiconductor supply chain.
The funding, supported by the CHIPS and Science Act, is intended to advance R&D into semiconductors and materials for applications such as power control, conversion, and delivery.
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According to the Department, improvements to power converter technologies could deliver greater energy efficiency, improved grid stability, and lower thermal losses.
The initiative aims to reduce US reliance on overseas manufacturing by developing these capabilities domestically and is expected to support energy infrastructure and economic resilience.
The four companies involved are Helion, Commonwealth Fusion Systems, Vertical Semiconductor, and Sibelco.
Helion is set to receive up to $175m to develop high-voltage power semiconductors and advanced power modules for use in fusion energy applications.
Commonwealth Fusion Systems may receive up to $85m for work on semiconductors dedicated to radio-frequency plasma heating, embedded diagnostics for fusion, and radiation-hardened electronics.
Vertical Semiconductor is in line for up to $73m for the development of vertical gallium nitride (GaN) power semiconductors. The project aims to enable more compact and efficient power delivery in advanced computing and will include a demonstration of the technology in a 2.5MW super intelligence data centre rack.
Sibelco is expected to receive up to $56m for next-generation purification methods for ultra-high-purity quartz, a material used throughout the semiconductor manufacturing process.
US Commerce Secretary Howard Lutnick said: “The Trump Administration is accelerating American semiconductor innovation to enhance our domestic energy and power resources. These investments expand domestic research, secure critical supply chains, and create high-paying American jobs.”
The DOC will acquire a minority, non-controlling, non-voting equity stake in each of the four companies as part of the funding arrangement.
DOC semiconductor investment and innovation executive director Bill Frauenhofer said: “These CHIPS R&D awards will support breakthroughs in power semiconductor devices and critical materials.
“Accelerating domestic R&D across these technologies will strengthen America’s ability to convert and deliver power for the grid, advanced data centres, defence systems, and emerging fusion energy.”
Last month, Anderon, a subsidiary of IBM, completed an award agreement worth $1bn with the US DOC under the CHIPS and Science Act.
