Helion’s CHIPS letter of intent targets the fusion semiconductor supply chain

Everett R&D would advance new packaging for Helion’s fusion semiconductor supply chain

(Image courtesy of Helion)

Helion has signed a letter of intent with the US Department of Commerce for up to $175 million in CHIPS research funding, and the terms say as much about Helion semiconductors and their supply chain as the headline figure does. Under the proposed terms, the government would receive an equity stake, and the funding targets high-voltage devices that Helion says are currently available only from overseas manufacturers.

Pulsed-power demands on Helion semiconductors

Helion’s fusion systems rely on high-power pulsed electrical systems that must repeatedly and efficiently switch and recover large amounts of energy. Commerce describes the funded work as high-voltage power semiconductors and advanced power modules for high-peak-current pulsed-power applications, and says the devices will power, control and harvest energy from the magnets driving Helion’s fusion generators.

Helion states that semiconductors meeting its requirements are currently available only from overseas manufacturers. Its next-generation devices aim for higher efficiency, longer operating lifetime and more efficient cooling, and the company expects domestic development to improve reliability, cut costs and remove supply constraints as it moves toward commercial deployment.

Commerce places the project within a wider push on power electronics, where it says better power converter performance can bring higher power efficiency, enhanced grid stability and lower thermal losses. It also says developing these capabilities domestically would reduce reliance on overseas manufacturing.

Where Helion semiconductors would be developed

Under Helion’s plan, more than $100 million would fund semiconductor and advanced packaging R&D in Everett, Washington, bringing over 100 jobs and substantial power module manufacturing capability to the state. The work also advances new packaging capabilities designed to integrate multiple semiconductor devices into efficient, mass-deployable packages.

About $80 million would support R&D on semiconductor tooling, design and process development with an industry partner in Burlington, Vermont, aimed at strengthening the domestic supply chain for the technologies needed to manufacture fusion power plants at scale. The remaining funds are earmarked for further packaging enhancements and manufacturing automation.

Helion’s release also cites $50 million of additional private investment, for a total programme of $225 million.

Final terms and the equity stake

Commerce says it will receive a minority, non-controlling and non-voting equity stake in each recipient as a condition of making the awards. Helion adds that, upon entering a definitive award agreement, its stake would be a $175 million non-voting interest based on its most recent Series G preferred stock valuation.

Helion’s letter is one of four that Commerce announced in October 2026, covering up to $389 million for power semiconductors and critical materials. The others are Commonwealth Fusion Systems, Vertical Semiconductor and Sibelco.

Everett would gain power module manufacturing capability alongside its R&D, while the Burlington work centres on tooling, design and process development.

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