Helion Secures $175 Million for Semiconductor Development in Fusion Energy

Major Funding for Semiconductor Innovation

Helion, a pioneering startup in the fusion energy sector, has announced that it will receive a substantial $175 million from federal sources. This funding aims to advance the development and manufacturing of innovative semiconductors and power electronics critical for its fusion power plants.

Currently, these devices experience an electricity loss ranging from 5% to 10%, which might appear minor but can accumulate significantly within Helion’s complex systems. According to David Kirtley, Helion's co-founder and CEO, slashing this loss in half could effectively double the power output generated by their fusion technology.

Building the Future of Energy

Helion is hustling to finalize its inaugural power plant, Orion, ahead of an ambitious 2028 deadline to start delivering electricity to Microsoft. The new federal funding will facilitate the creation of an automated production line in Washington State, focusing on semiconductor module packaging and testing to support the ongoing construction of the Orion plant.

Helion's new production facility will stand as the first of its kind in the U.S. to manufacture a class of semiconductor that is not only crucial for fusion energy but also applicable in diverse fields such as manufacturing and healthcare.

Kirtley emphasized the significance of this initiative, stating, “There are no U.S. manufacturers right now that do it. This is absolutely enabling going from zero to 100 for advanced, high-voltage, and pulsed semiconductors here in the United States.”

Investments and Future Prospects

This three-year funding package, awarded by the Department of Commerce under the CHIPS Act—a legislative measure aimed at boosting U.S. semiconductor research and manufacturing—also accompanies a new $50 million private investment from an undisclosed source. To date, Helion has attracted over $3.2 billion in total, firmly establishing itself as the second-best-funded fusion startup in the industry.

Out of the total funding, over $100 million will be allocated for semiconductor and packaging research in Washington, while approximately $80 million will go toward advanced semiconductor tooling and process development in collaboration with GlobalFoundries in Vermont. GlobalFoundries has separately secured more than $80 million from the federal government to enhance gallium-nitride semiconductor production, which is crucial for power electronics.

Enhancing Efficiency to Drive Innovation

While Kirtley recognized that the funded R&D efforts wouldn’t be integrated into the Orion plant prior to its launch—due to lengthy federal contracting processes—the advancements promised will significantly benefit Helion's future power plants, enhancing their efficiency in competitive electricity markets.

At the heart of Helion’s fusion strategy is semiconductor efficiency, which is vital as the company opts to harness electricity directly from fusion reactions rather than through traditional steam turbines. This innovative method entails using a field-reversed configuration reactor where fusion fuel is injected into either end of a specially designed chamber, where it heats to create plasma that is then propelled toward each other.

As the plasmas collide, a complex magnetic field compresses them, achieving temperatures exceeding 100 million degrees Celsius—conditions under which atoms fuse, releasing energy that pushes the plasma outward. Helion's direct energy conversion approach captures this energy efficiently, aiming for reactors that yield more electricity than they consume.

Kirtley stated, “One of the enabling parts of our technology that allows us to do this direct electricity recovery — putting electricity into fusion and at a very high efficiency, recovering it at high speed — is the modern semiconductor. We’re going to take that to the next level here, increase the efficiency.”

Wider Applications Beyond Energy

The implications of advanced power electronics extend beyond just fusion energy. The automotive industry, particularly electric vehicles (EVs), is a significant sector benefitting from these innovations. Even consumer electronics, though less power-intensive, stand to gain. Additionally, the defense sector is likely to leverage these advancements, particularly as energy weapons gain traction in modern warfare contexts.

Bill Frauenhofer, who leads the semiconductor investment initiative at the Department of Commerce, noted that the funding will play a crucial role in “converting and delivering power to critical applications in defense, grid transmission, and advanced energy generation.” However, Kirtley reiterated Helion’s primary focus remains on contributing to the domestic energy supply and enhancing energy security in the U.S.