Helion secures federal funds to build US semiconductor plant for fusion power
The startup received $175 million to develop high-voltage chips, aiming to boost power output for its 2028 Microsoft deal.
Key points
- Helion was awarded $175 million in federal funding under the CHIPS Act for semiconductor development.
- The company also secured $50 million in private investment, bringing total funding raised to over $3.2 billion.
- New manufacturing capacity in Washington State will produce advanced semiconductors for fusion and other industries.
Helion Energy has received $175 million in federal funding to research, develop, and manufacture advanced semiconductors for its fusion power plants, the company announced on Thursday. This award comes from the Department of Commerce under the CHIPS Act, a law designed to strengthen US semiconductor manufacturing. The funds will support the construction of automated production lines in Washington State, creating the first domestic capacity for this specific class of high-voltage, pulsed semiconductors.
In plain English
Current power electronics lose between five and ten percent of the electricity flowing through them. In a complex system like a fusion reactor, these small losses add up significantly. Helion CEO David Kirtley told TechCrunch that cutting these losses in half would effectively double the power output of the fusion system. The new manufacturing line will produce semiconductors used not only in fusion energy but also in manufacturing, wastewater treatment, medicine, and defense sectors.
The background
Helion is racing to complete its first power plant, named Orion, by 2028. This timeline is driven by a commitment to provide Microsoft with grid electricity from the facility. The federal award is structured over three years and includes more than $100 million for semiconductor and advanced packaging research and development in Washington State. Additionally, approximately $80 million will support research efforts in Vermont for advanced tooling and design in partnership with GlobalFoundries.
What changes now
Alongside the federal grant, Helion announced a fresh $50 million private investment, though the investor was not named. With this new capital, Helion has raised more than $3.2 billion in total, making it the second-best-funded fusion startup. GlobalFoundries has separately received more than $80 million from the federal government to advance gallium-nitride semiconductor manufacturing. The new Washington facility aims to move US production of these advanced components from zero to full capacity.
Key terms explained
System administrators should view this as a supply chain and infrastructure story rather than a software patch cycle. When hardware manufacturers build domestic production lines for critical components, it reduces reliance on foreign sources for high-voltage electronics. Teams usually monitor such shifts to ensure their own supply chains for power equipment remain stable. Check whether your organization’s critical infrastructure depends on semiconductors that might be affected by these manufacturing changes. Focus on long-term hardware compatibility and vendor stability when planning upgrades for power-critical systems.
Background: Supply chain attacks
Supply chain attacks compromise your systems indirectly. An adversary infiltrates a trusted vendor or software update. When you install that legitimate-looking update, the malware executes inside your network. This method bypasses perimeter defenses because the code carries a valid digital signature from a reputable source.
Read the full guide: What Is Supply Chain Attacks: How Indirect Compromise Works
What to do and how to stay safe: Helion
- Review your organization’s hardware inventory to identify critical systems relying on high-voltage power electronics or specialized semiconductors.
- Monitor vendor announcements regarding supply chain stability and manufacturing locations for essential power infrastructure components.
- Assess the long-term support lifecycle of any fusion-related or experimental power technology your organization may be evaluating for future use.
- Ensure your procurement policies account for potential shifts in domestic manufacturing capabilities for advanced electronic components.
General security guidance from the Vector Update newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
How much funding did Helion receive from the federal government?
Helion was awarded $175 million in federal funding from the Department of Commerce under the CHIPS Act.
When does Helion plan to provide electricity to Microsoft?
Helion aims to complete its first power plant, Orion, by 2028 to meet its deadline for providing electricity to Microsoft.
Where will the new semiconductor manufacturing facility be located?
The new production line for advanced semiconductors will be built in Washington State.
