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US Commerce Department signs $389 million chip research deals

Published

The US Department of Commerce signed four letters of intent for up to $389 million in CHIPS and Science Act research awards. The money would go to Helion, Commonwealth Fusion Systems, Vertical Semiconductor and Sibelco.

The proposed awards include up to $175 million for Helion, $85 million for Commonwealth Fusion Systems, $73 million for Vertical Semiconductor and $56 million for Sibelco. The money comes through the CHIPS Research and Development Office. The deals remain at the letter-of-intent stage.

Commerce would receive minority, noncontrolling, nonvoting equity stakes in each company as a condition of the awards. Commonwealth Fusion Systems said it will use its money to develop semiconductor technology for robotic maintenance systems at its ARC plant. It also plans to improve radio-frequency power generators that support commercial fusion.

Bill Frauenhofer, Executive Director of Semiconductor Investment and Innovation at the department, said the awards will support breakthroughs in power semiconductor devices and critical materials. Commerce Secretary Howard Lutnick said: "The Trump Administration is accelerating American semiconductor innovation to enhance our domestic energy and power resources."

Key facts

Who
Commonwealth Fusion Systems (top-funded fusion startup receiving the award); Helion (recipient of up to $175 million proposed award); Vertical Semiconductor (recipient of up to $73 million proposed award); Sibelco (recipient of up to $56 million proposed award)
What
The fusion startup Commonwealth Fusion Systems received an $85 million award from the federal government to advance conductors for fusion power plants, according to the description.
When
23 October 2026
Where
United States
Status
Reported

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