Helion Wins $175 Million to Develop Chips That Could Double Fusion Plant Output
Helion wins $175 million in CHIPS Act funding to develop U.S. power semiconductors that could double output at future fusion plants and aid defense systems.
Summary
On October 22, 2026, Helion announced a three-year, $175 million Department of Commerce award under the CHIPS Act, plus $50 million from an undisclosed private investor. Helion has now raised more than $3.2 billion, ranking second among fusion startups. More than $100 million will support semiconductor and advanced packaging research in Washington State, including automated module production, packaging and testing. About $80 million will fund Vermont tooling, design and process development with GlobalFoundries, which separately received over $80 million in federal funding for gallium nitride semiconductors widely used in power electronics. Helion says its Washington line will be the first U.S. facility producing this class of high voltage, pulsed semiconductor for fusion, manufacturing, wastewater treatment, medicine and defense.
Helion is building Orion to supply Microsoft with grid electricity by 2028. Its electronics currently lose 5% to 10% of electricity, and CEO David Kirtley says halving that loss could double system output. Because federal contracts can take months to negotiate, the new research will not reach Orion before launch, but could improve later plants and their competitiveness in electricity markets. Helion’s field reversed configuration collides deuterium and helium-3 plasmas, compresses them above 100 million degrees Celsius, then uses magnets and capacitors to convert the expanding plasma’s energy directly into electricity without steam turbines. Efficient electronics are essential to producing more power than the reactor consumes. Commerce semiconductor investment chief Bill Frauenhofer also identified defense, grid transmission and advanced energy applications, although Kirtley said Helion remains focused on domestic grid power and energy security.
Positives
- $175 million in CHIPS Act funding will support Helion’s semiconductor research, development and manufacturing over three years.
- $50 million in new private investment lifts Helion’s total funding above $3.2 billion, second among fusion startups.
- More than $100 million will expand Washington State research, advanced packaging and automated semiconductor production capacity.
- Halving the current 5% to 10% electrical loss could double Helion’s fusion system output, according to CEO David Kirtley.
- Washington State will host the first U.S. production line for this class of high voltage, pulsed semiconductor.
Risks & concerns
- Orion will not receive the newly funded semiconductor advances before its planned 2028 launch because federal contract negotiations can take months.
- Current power electronics lose 5% to 10% of the electricity passing through Helion’s complex fusion system.
- Helion still must make direct energy conversion produce more electricity than its reactor consumes to establish commercial viability.
- The United States currently has no domestic manufacturer for Helion’s required class of advanced high voltage, pulsed semiconductors.
- Helion faces a fixed 2028 deadline to deliver grid electricity to Microsoft while Orion remains under construction.