Primary source: Helion announcement

Helion, a fusion company based in Everett, Washington, said Thursday it signed a letter of intent with the U.S. Department of Commerce for up to $175 million in funding through the CHIPS Research and Development Office, along with $50 million in additional private investment^1,2.

The company said the money would support research, development, and manufacturing of high-voltage semiconductors and power electronics used in its pulsed fusion systems^1,2. TechCrunch, citing co-founder and chief executive David Kirtley, reported that current devices lose about 5% to 10% of the electricity that flows through them, and that cutting those losses in half would double the fusion system's power output¹.

Helion's statement described the federal money as an expected award under a letter of intent, not a closed contract². Upon a definitive award agreement, the company said the Commerce Department would receive a $175 million non-voting interest in Helion based on its most recent Series G preferred-stock valuation².

More than $100 million would support semiconductor and advanced-packaging work in Washington state, Helion said, and would bring more than 100 jobs and power-module manufacturing capability there². About $80 million would support tooling, design, and process development in Burlington, Vermont; TechCrunch, citing Kirtley, named GlobalFoundries as the partner, while Helion's release referred only to an industry partner^1,2.

Helion said semiconductors that meet its pulsed-power needs are currently available only from overseas manufacturers². Kirtley told TechCrunch there are no U.S. manufacturers of the class of device Helion plans to make, and that a production line in Washington state would be the first in the United States for that class¹.

The three-year award is under the CHIPS Act, TechCrunch reported¹. Kirtley told the outlet the funded research would not make it into Orion, Helion's first plant, in time for a 2028 deadline to supply Microsoft with electricity, because federal contracts can take months to negotiate, but that later plants could be more efficient¹.

Helion harvests electricity directly from fusion reactions rather than heating steam to drive a turbine, TechCrunch reported, so power-electronics efficiency is central to its design¹. Commerce Secretary Howard Lutnick, quoted in Helion's release, said the investment expands domestic research and supply chains². Bill Frauenhofer of the Commerce Department said the work would support power conversion for defense, grid transmission, and advanced energy generation^1,2. Kirtley told TechCrunch Helion's main focus remains putting power on the grid¹.

No other independent news outlet had confirmed the announcement at the time of writing beyond TechCrunch's report and Helion's own statement^1,2. The investor behind the $50 million private round was not disclosed^1,2.

Sources

1. TechCrunchFusion startup Helion is developing new semiconductors that could double output of its power plantsOct 22, 10:59 AM
2. Helion (press release)Helion Signs Letter of Intent For $175 Million CHIPS Award to Advance U.S. High Voltage Semiconductor R&D To Support Fusion EnergyOct 22, 9:05 AM

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