U.S. Commerce Department plans $389 million semiconductor R&D awards

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U.S. semiconductor R&D awards

Highlights

The U.S. Commerce Department announced up to $389 million in planned semiconductor R&D awards to four firms under the 2022 $10 billion funding program.
Helion, Commonwealth Fusion Systems, Vertical Semiconductor, and Sibelco are set to receive up to $175 million, $85 million, $73 million, and $56 million, respectively, for power chip and materials research.
The funding structure grants the U.S. government minority, non-controlling, non-voting equity stakes, tying financial interests to project outcomes while ensuring company independence.

Planned awards target power chips and materials

As reported by Reuters, citing the U.S. Commerce Department, the agency has signed letters of intent for four new research and development awards under the semiconductor funding program approved by Congress in 2022. The department says the latest planned awards total up to $389 million and add to 19 R&D grants it has awarded in recent months from a $10 billion fund.

Helion is set to receive up to $175 million to develop high-voltage power semiconductors and advanced energy power modules for fusion power generation. Commonwealth Fusion Systems is due up to $85 million to develop semiconductors for radio-frequency plasma heating, power electronics, fusion diagnostics and radiation-hardened electronics.

Vertical Semiconductor is slated for up to $73 million to advance vertical gallium nitride power semiconductors for AI data center racks. Sibelco is expected to receive up to $56 million to develop next-generation purification for ultra-high-purity quartz used in the semiconductor supply chain.

Funding structure supports domestic supply goals

Commerce Secretary Howard Lutnick says in a statement that the awards will accelerate American semiconductor innovation to strengthen domestic energy and power resources. The funding focus links chip research not only to electronics manufacturing, but also to electricity systems, fusion technology and data center demand.

The department says the U.S. government will receive minority, non-controlling and non-voting equity stakes as a condition of the funding. That structure gives Washington a financial interest in the supported projects while leaving operational control with the companies.

In our earlier article on the UK’s nuclear fusion push, we examined how the UK Atomic Energy Authority sees fusion moving from lab research toward commercial planning amid intensifying competition with China. We noted progress in areas such as superconducting magnets and higher-pressure operation in the MAST Upgrade machine, alongside the UK’s goal to develop a prototype fusion power plant by 2040 as energy security and industrial supply chains become increasingly strategic.

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