US proposes up to $389 million for power semiconductor and materials research
The Commerce Department signed four CHIPS and Science Act letters of intent for R&D support spanning fusion electronics, vertical GaN power devices and ultra-high-purity quartz. The proposed awards remain preliminary, with federal minority equity interests attached.
- Publish date: 2026-10-22
- Category: Mining & Minerals
- Original source: NIST / US Department of Commerce
- Reading time: 4 min read
Four letters of intent, not finalized grants
The US Department of Commerce announced on October 22 that it had signed four letters of intent offering up to $389 million in semiconductor research and development support. The package is aimed at technologies tied to energy and power semiconductors, as well as a material used in chip manufacturing. Because the instruments are letters of intent, the stated amounts are ceilings for proposed awards, not evidence that all funds have already been disbursed.
The announced maximums are $175 million for Helion, $85 million for Commonwealth Fusion Systems, $73 million for Vertical Semiconductor and $56 million for Sibelco. The proposed awards include minority, non-controlling and non-voting federal equity stakes. That structure means support is linked to an ownership interest, although the government says it would not control the companies through those stakes.
NIST / US Department of Commerce
A mix of power electronics and a process material
Helion’s proposed work concerns high-voltage semiconductors and modules for its fusion system. Commonwealth Fusion Systems’ R&D scope includes power electronics, radio-frequency plasma heating, diagnostics and radiation-hardened electronics. Vertical Semiconductor’s proposed project targets vertical gallium nitride devices, a power-device architecture relevant to high-voltage conversion. Sibelco’s work is aimed at processing ultra-high-purity quartz.
The projects span different stages of the supply chain. Power devices manage electrical conversion and control; fusion systems require specialized electronics to operate pulsed and high-energy equipment. High-purity quartz is a feedstock for semiconductor manufacturing components and process equipment. The public announcement describes the research goals, but does not provide detailed milestones, production volumes or commercialization schedules for each company.
NIST / US Department of Commerce
Strategic rationale and limits
The program places power semiconductors and a specialized material within a broader effort to strengthen domestic semiconductor capabilities. The focus is notable because chip supply depends not only on leading-edge processors but also on devices that convert electricity efficiently and on upstream inputs used in manufacturing. Still, research funding does not immediately create qualified production capacity or guarantee that a technology will reach commercial scale.
The four letters combine projects with different technical and market risks. Fusion-related electronics depend on the progress of the underlying energy systems; vertical GaN must demonstrate manufacturability and performance in target applications; and high-purity quartz processing must meet demanding consistency requirements. The announced maximum alone cannot establish which bottleneck will be relieved or how soon downstream customers might benefit.
NIST / US Department of Commerce
What to monitor — analysis
The next evidence points are final award agreements, agreed technical milestones, the timing and conditions of federal equity stakes, and measurable progress from R&D into qualified manufacturing. For buyers, supplier qualification and repeatable material specifications will matter more than headline award totals. For policymakers, transparent reporting can show whether the awards produce durable capacity and private follow-on investment.
This analysis is separate from the department’s stated terms. The announcement does not demonstrate completed awards, commercial output or lower semiconductor costs. It establishes a proposed portfolio of support with specified recipients and research areas. Follow-up should distinguish signed final agreements from letters of intent and company projections from independently demonstrated process or device performance.