Fusion Startup Helion Secures $175M US Government Grant to Double Power Plant Output via New Semiconductors
Helion receives a $175M CHIPS Act grant and $50M private investment to tackle power electronics efficiency, aiming to support its 2028 electricity supply goal for Microsoft.
Fusion energy startup Helion Energy announced on October 22, 2026, that it has been awarded $175 million in federal funding from the U.S. Department of Commerce under the CHIPS Act. The funds are designated for researching, developing, and manufacturing advanced semiconductors and power electronics for its fusion power plants. Additionally, the company revealed a new $50 million private investment, though the investor remains undisclosed.
The primary objective of this capital allocation is to address the efficiency bottleneck in Helion's "direct energy conversion" technology. Currently, devices within its system lose approximately 5% to 10% of the electricity flowing through them. David Kirtley, co-founder and CEO of Helion, stated that halving this loss would effectively double the power output of the fusion system. For commercial viability, improving net energy gain is a critical economic metric.
Part of the funding will establish automated semiconductor module, packaging, and testing capacity in Washington State, marking the first such production line in the U.S. for high-voltage pulsed semiconductors used in fusion, manufacturing, medicine, and defense. Kirtley noted that no U.S. manufacturers currently produce these components. Another portion will support R&D efforts in Vermont with GlobalFoundries for tooling and design.
While this financing aids long-term technological iteration, Kirtley acknowledged that due to the lengthy negotiation periods typical of federal contracts, these newly developed semiconductors will not be ready in time for Orion, Helion's first power plant currently under construction. Orion must be completed by 2028 to fulfill its agreement to supply electricity to Microsoft. Thus, this capital deployment is focused on solving cost competitiveness and efficiency issues for subsequent plants rather than accelerating the immediate delivery of the current project.