The administration of U.S. President Donald Trump will provide up to $389 million (about 516 billion won) for the development of next-generation power semiconductors and key materials used in artificial intelligence data centers and fusion power generation. Because the U.S. government will take partial stakes in the companies receiving the money, the arrangement goes beyond a simple grant and marks an expansion of direct government investment in advanced industries.
The U.S. Commerce Department announced that it had signed letters of intent (LOIs) worth a combined $389 million with four companies pursuing research and development in power semiconductors and critical chip materials, Reuters and other outlets reported on the 22nd.
The support draws on a $10 billion (about 13.26 trillion won) research and development fund established under the CHIPS and Science Act of 2022. The Commerce Department has awarded 19 research and development grants to chip companies in recent months.
The largest recipient is Helion, a U.S. fusion energy developer. Helion will receive up to $175 million (about 232 billion won) to develop high-voltage power semiconductors and advanced power modules needed for fusion power generation.
Fusion power generation replicates on Earth the process by which the sun produces energy. Because the reaction must be controlled using powerful magnetic fields and other means, semiconductor technology capable of precisely regulating high levels of power is essential. Separately from the government support, Helion plans to raise an additional $50 million (about 66.3 billion won) from private investors.
Commonwealth Fusion Systems (CFS), another fusion company, will receive up to $85 million (about 112.7 billion won). The company plans to develop semiconductors and power electronics that heat and control the ultra-high-temperature plasma inside a fusion reactor, along with radiation-hardened electronic components.
Funding will also go toward chips designed to improve the power efficiency of AI data centers. Vertical Semiconductor, a spinoff from the Massachusetts Institute of Technology (MIT), will receive up to $73 million (about 96.8 billion won) to develop next-generation power semiconductors based on gallium nitride (GaN).
GaN power semiconductors are used to reduce energy losses during power conversion and to supply high levels of power efficiently. As electricity consumption at AI data centers surges, the technology is growing in importance. Vertical Semiconductor is pursuing technology that can be applied to 2.5-megawatt AI data center server racks.
Strengthening the supply chain for critical chip materials is also covered. The U.S. unit of Sibelco, a Belgian minerals company, will receive up to $56 million (about 74.2 billion won) to develop refining technology for ultra-high-purity quartz used in semiconductor manufacturing. The company plans to build a demonstration facility in North Carolina to test next-generation refining technology.
A distinguishing feature of the program is that the U.S. government will acquire minority stakes in the companies as a condition of the grants. The stakes, however, carry no voting rights or management control. The aim is to share in the economic gains from technological development and corporate growth without intervening directly in how the companies are run.
U.S. Commerce Secretary Howard Lutnick said the support "will accelerate American innovation in semiconductor technology and strengthen domestic energy and power resources."
Through the investment, the U.S. government intends to reduce its reliance on overseas production and strengthen domestic supply chains for advanced semiconductors and critical materials. With electricity demand from AI data centers climbing sharply and competition intensifying to commercialize fusion power, securing power semiconductor technology is emerging as a central task that will shape national competitiveness.
The announcement covers only the signing of letters of intent between the government and the companies. The actual amount of funding and detailed conditions will be finalized during negotiations on the final agreements.