US Commerce Department Allocates $389 Million to Boost Power Semiconductor Innovation
The US Commerce Department is awarding $389 million in CHIPS Act funding to four firms to advance power semiconductor research and critical materials.
POLICY WIRE — Washington, D.C. — The U.S. Department of Commerce announced plans on Thursday to distribute $389 million in research and development funding to four companies specializing in power semiconductor devices and critical materials.
These federal awards, issued under the CHIPS and Science Act, are designed to accelerate innovation in technologies essential for the control, conversion, and delivery of power. The initiative supports a wide range of applications, including energy infrastructure, fusion energy, and artificial intelligence systems.
As a condition of the financial support, the federal government will secure minority, non-voting, and non-controlling equity stakes in the recipient firms. The funding is sourced from a $10 billion semiconductor research fund originally approved in 2022.
The four companies selected for the awards include Helion, which is set to receive up to $175 million, and Commonwealth Fusion Systems, slated for $85 million. Vertical Semiconductor and Sibelco will receive $73 million and $56 million, respectively.
This announcement follows a broader trend of federal investment in the domestic supply chain. Since September 2025, the Commerce Department has issued three new awards totaling $900 million and nine preliminary awards, utilizing funds appropriated for advanced microelectronics research under Section 9906 of the FY21 NDAA.
To protect taxpayer interests, the Commerce Department has negotiated upside sharing agreements for 27 of its 40 total projects. These agreements ensure that companies share profits with the federal government if project returns significantly exceed initial projections.
Reporting by Policy-Wire (PW)
