US to award $389 million in R&D funds for power semiconductors, critical materials

WASHINGTON, Oct 22 : The US Commerce Department said on Thursday it plans to award $389 million in research and development funding to four companies working on power semiconductor devices and critical materials, with the government receiving minority equity stakes.

The department in recent months has awarded 19 R&D grants to semiconductor firms from a $10 billion fund approved by Congress in 2022. Commerce Secretary Howard Lutnick said in a statement the awards will "accelerate American semiconductor innovation to enhance our domestic energy and power resources."

The department said it had signed letters of intent to provide four new awards:

• Helion will receive up to $175 million to develop high-voltage power semiconductors and advanced energy power modules 

in fusion power generation. The semiconductors will power and use energy from magnets driving Helion fusion generators. 

• Commonwealth Fusion Systems will receive up to $85 million to develop semiconductors for radio-frequency plasma heating, power electronics, fusion diagnostics, and radiation-hardened electronics. 

• Vertical Semiconductor will receive up to $73 million to advance its vertical gallium nitride power semiconductors for use in AI data center racks. 

• Sibelco will receive up to $56 million to develop next-generation purification for ultra-high-purity quartz used in the semiconductor supply chain.

The department said as a condition of funding, the US government will receive minority, non-controlling and non-voting equity stakes.