Helion secures $175M CHIPS award for semiconductor development tied to fusion

Fusion startup to partner with GlobalFoundries and create over 100 jobs in Everett

By LineZotpaper

Published22 October 2026

Updated22 October 2026

Read Time3 min

Sources2 outlets

Fusion startup Helion has secured a letter of intent from the U.S. Department of Commerce for up to $175 million in CHIPS Act funding to support advanced semiconductor research and manufacturing, the company announced. The three-year initiative, which Helion is matching with $50 million in private investment, will focus on high-voltage semiconductors for commercial fusion energy systems and domestic supply chain development.

Helion is building the Orion fusion plant in Malaga, Wash., under an agreement to supply Microsoft with electricity. The company's CEO, David Kirtley, said the CHIPS award which remains to be finalized aims to build out the high-voltage semiconductor supply chain in the United States. The Commerce Department would receive a $175 million non-voting equity interest in Helion as part of the deal, and the company is contributing $50 million of private investment.

The semiconductor initiative has two focal areas. Over $100 million will support R&D and manufacturing in Everett, focused on next-generation high-voltage semiconductors and advanced packaging. About $80 million will support R&D in partnership with chip manufacturer GlobalFoundries, which has operations in Vermont, New York and overseas.

High-voltage semiconductors play a critical role in Helion's system, which uses powerful electrical pulses to form and compress plasma to create fusion conditions. The semiconductors must operate at high efficiencies to capture the energy produced. Helion currently sources chips from overseas vendors for its existing test systems and for Orion, where it expects some chips developed through the initiative to be used late in construction.

“The CHIPS Act goal, but also specifically our component in it, builds out the high-voltage semiconductor supply chain here in the United States, both on the R&D as well as the manufacturing,” Kirtley told GeekWire.

Secretary of Commerce Howard Lutnick said the investment “expands domestic research, secures critical supply chains, and creates high-paying American jobs.” The work in Everett is expected to create more than 100 jobs, adding to Helion's existing team of semiconductor experts. The company has raised over $1.5 billion from investors to date.

Congress passed the CHIPS and Science Act with leadership from Washington Senator Maria Cantwell, and President Joe Biden signed it into law in August 2022. The law included $52.7 billion for semiconductor manufacturing, research and related activities.

Dozens of companies globally are chasing the goal of commercial fusion, but none have yet demonstrated a system that produces more energy than it consumes. Helion continues to build Orion components and operate its other internal systems while the semiconductor effort gets underway alongside its core mission.

Analysis

Why This Matters

The award ties two major national priorities fusion energy and semiconductor manufacturing into a single investment, highlighting the government's willingness to back pre-commercial technologies with broad supply chain benefits.
Helion's diversification into chip making could provide an independent revenue stream and strategic insulation against the long timeline of fusion's commercial development.
The focus on high-voltage semiconductors could have applications in other industrial and energy sectors, strengthening a niche part of the domestic chip supply chain.

Background

Helion is among dozens of private fusion companies working to commercialise fusion power, which has yet to achieve net energy gain in a commercial setting. The company's approach directly converts plasma energy into electricity without a steam turbine. The CHIPS and Science Act allocated $52.7 billion for domestic semiconductor manufacturing, research, and workforce development. Helion is building its Orion plant in Malaga, Washington, with an agreement to supply Microsoft with power and a target for initial operations in 2028.

Key Perspectives

Helion (Company): The company views the semiconductor initiative as a parallel effort that secures critical components for its fusion systems and builds valuable domestic R&D capacity in a specialised area of chip design. U.S. Department of Commerce: The deal aligns with the CHIPS Act's goals of reshoring advanced manufacturing and investing in cutting-edge technology that supports American economic and national security. Critics and Skeptics: Fusion technology remains unproven at commercial scale, and the management attention and capital required for a semiconductor program could draw resources away from Helion's primary engineering challenge of achieving net energy production.

What to Watch

Finalisation of the CHIPS award agreement and the timing of the funding.
Helion's hiring of materials scientists, semiconductor engineers and technicians in Everett.
Whether chips developed under the program are successfully integrated into the Orion plant.
Any demonstration of the semiconductor technology improving overall system efficiency in Helion's existing test facilities.

Sources

Fusion startup Helion is developing new semiconductors that could double output of its power plants · Startups | TechCrunch
Fusion startup Helion lines up potential $175M CHIPS award to develop advanced semiconductors · GeekWire

Checked

11 claims in this story checked against 1 source: 6 supported.

Show each claim

Partly supportedHelion secured a $175 million CHIPS award.GeekWire: “The company today announced a letter of intent with the U.S. Department of Commerce for up to $175 million in funding for a three-year program”
SupportedHelion secured a letter of intent from the Commerce Department for up to $175 million.GeekWire: “The company today announced a letter of intent with the U.S. Department of Commerce for up to $175 million in funding”
SupportedHelion will partner with GlobalFoundries on semiconductor research and development.GeekWire: “About $80 million will support R&D for next-generation semiconductor development in partnership with GlobalFoundries”
Partly supportedThe Everett work will create more than 100 jobs.GeekWire: “The work in Everett is expected to create more than 100 jobs.”
Partly supportedHelion is matching the initiative with $50 million in private investment.GeekWire: “Helion is also putting $50 million of private investment toward the semiconductor effort.”
SupportedThe initiative is a three-year program.GeekWire: “for a three-year program to support R&D tied to semiconductor technology for commercial fusion energy.”
SupportedThe Commerce Department would receive a $175 million non-voting equity interest in Helion.GeekWire: “Under the deal, which remains to be finalized, Commerce would receive a $175 million non-voting equity interest in Helion.”
SupportedKirtley said, “The CHIPS Act goal, but also specifically our component in it, builds out the high-voltage semiconductor supply chain here in the United States, both on the R&D as well as the manufacturing.”GeekWire: ““The CHIPS Act goal, but also specifically our component in it, builds out the high-voltage semiconductor supply chain here in the United States, both on the R&D as well as the manufacturing,” said David Kirtley, Helion’s CEO, in a GeekWire interview.”
SupportedLutnick said, “This investment expands domestic research, secures critical supply chains, and creates high-paying American jobs.”GeekWire: ““This investment expands domestic research, secures critical supply chains, and creates high-paying American jobs,” Secretary of Commerce Howard Lutnick said in a statement.”
Partly supportedHelion currently sources chips from overseas vendors for its existing test systems and Orion.GeekWire: “The company has semiconductors available for use in Orion, primarily sourced from overseas vendors, he said.”
Partly supportedHelion expects some chips developed through the initiative to be used in Orion late in construction.GeekWire: “Kirtley expects some chips developed through the initiative to be used in Orion, potentially late in its construction.”