Fusion startup Helion has received $225 million in funding, including $175 million from the U.S. government, to develop advanced semiconductors that could significantly increase the efficiency and output of its fusion power plants, targeting a 2028 launch to supply electricity to Microsoft.
- Federal and private funding total $225 million for semiconductor R&D.
- New U.S.-based production line will manufacture advanced power semiconductors.
- Improved semiconductor efficiency could double fusion plant electricity output.
What happened
Helion, a fusion energy startup, announced it has been awarded $175 million in federal funding under the CHIPS Act to advance research, development, and manufacturing of highly efficient semiconductors used in its fusion reactors. Alongside this, the company secured an additional $50 million from private investors. Helion plans to build a new production facility in Washington State to manufacture these novel semiconductor modules, which currently have no U.S. manufacturers.
These semiconductors will be critical to Helion’s fusion power plants, including its first reactor, Orion, scheduled to deliver electricity to Microsoft’s grid by 2028. The funding also supports semiconductor research partnerships in Vermont with GlobalFoundries, focusing on tooling, design, and production methods. This initiative aligns with broader government efforts to bolster domestic semiconductor capabilities for multiple industries.
Why it matters
Helion’s approach to fusion power relies heavily on efficient power electronics that directly convert fusion energy into electricity, avoiding traditional steam turbines. Current semiconductor components lose about 5% to 10% of electricity passing through them; cutting this loss in half could effectively double the power output of the fusion system. This efficiency gain is crucial for making fusion commercially viable by ensuring reactors produce more power than they consume.
The advanced semiconductors being developed will enable high-voltage, pulsed power handling at speeds and efficiencies not currently available from domestic manufacturers, potentially revolutionizing fusion energy generation. The technology also has wider applications in manufacturing, wastewater treatment, medicine, and defense, amplifying its broader impact beyond the energy sector.
What to watch next
While the new semiconductor research funded by the $225 million award will not impact Helion’s Orion power plant immediately due to contract timelines, it is expected to benefit subsequent reactors. Industry observers should monitor how these semiconductor advances translate into improved fusion plant performance and cost competitiveness in electricity markets.
Additionally, the progress of Helion’s automated semiconductor production line in Washington and ongoing R&D collaborations with GlobalFoundries in Vermont will be key indicators of how quickly the U.S. can scale production of these critical components. This development fits into the larger context of the CHIPS Act’s goal to strengthen domestic semiconductor manufacturing capabilities, including the commercialization of gallium-nitride power electronics.