The US Commerce Department plans to invest up to $389 million in semiconductor materials and advanced power technologies, including $56 million specifically earmarked for ultra-high-purity quartz processing, as Washington seeks to strengthen domestic chip supply chains.
The proposed funding, announced Thursday, would support four companies: Helion, Commonwealth Fusion Systems, Vertical Semiconductor and Sibelco. The awards form part of a $10-billion semiconductor research and development program authorized by Congress in 2022.
The investments would “accelerate American semiconductor innovation to enhance our domestic energy and power resources,” Commerce Secretary Howard Lutnick said.
The initiative reflects Washington’s push to secure critical materials and develop specialized semiconductors for industries beyond conventional computing, including fusion energy and AI data centres. These technologies require increasingly sophisticated power electronics and reliable supplies of high-purity manufacturing materials.
Fusion power
Helion stands to receive the largest allocation, with up to $175 million designated for high-voltage power semiconductors and advanced power modules used in fusion energy generation.
The technology would manage electricity flowing to and from the powerful magnets that drive Helion’s fusion generators, making specialized power electronics essential to its energy systems.
Commonwealth Fusion Systems could receive up to $85 million to develop semiconductors for radio-frequency plasma heating, power electronics, fusion diagnostics and radiation-hardened electronic systems.
Both projects face demanding operating conditions, including high electrical loads and radiation exposure, which require components capable of performing reliably in extreme environments.
Vertical Semiconductor is in line for up to $73 million to advance vertical gallium nitride power semiconductors designed for AI data centre racks.
Gallium nitride offers potential advantages in power efficiency and heat management, making it increasingly relevant as AI infrastructure drives demand for electricity-intensive computing systems.
Quartz supply chains
Sibelco could receive up to $56 million, specifically allocated to developing next-generation purification technology for ultra-high-purity quartz, a critical material used in semiconductor manufacturing.
The investment targets processing capabilities for a specialized mineral input essential to chip production, rather than semiconductor device development. Improving purification technology could help strengthen domestic supply chains for materials that must meet stringent manufacturing specifications.
Ultra-high-purity quartz plays an important role in semiconductor manufacturing because its exceptional purity makes it suitable for processes where contamination can compromise chip production.
The four proposed awards follow 19 semiconductor research and development grants issued by the Commerce Department in recent months under the broader federal program.
However, the latest commitments remain preliminary and are subject to letters of intent rather than finalized funding agreements.
As a condition of receiving the money, the companies would provide the US government with minority, non-controlling and non-voting equity stakes.
The arrangements would give Washington a financial interest in the technologies it supports without granting voting control over the recipients, linking federal semiconductor investment to potential commercial returns.