Helion Targets Power Loss Bottleneck With Custom Silicon Push
AI-generated image · Bay Street Wire
Backed by $175 million in CHIPS Act funding, the fusion startup is building a U.S.-based semiconductor pipeline to optimize energy recovery for its reactors.
While the broader AI industry grapples with energy constraints, fusion startup Helion is betting that custom power electronics are the key to unlocking commercial viability. As first reported by TechCrunch, the company has been awarded $175 million in federal funding via the Department of Commerce under the Biden-era CHIPS Act to develop and manufacture advanced semiconductors and power electronics.
Helion's current devices lose between 5% and 10% of the electricity that flows through them. David Kirtley, CEO and co-founder of Helion, told TechCrunch that reducing those losses by half could effectively double the power output of the fusion system. This efficiency is critical to Helion's "direct energy conversion" method, which captures electricity directly from fusion reactions rather than using heat to spin a turbine.
To achieve this, Helion is establishing a production line in Washington State for automated semiconductor module packaging and testing. Kirtley noted that there are currently no U.S. manufacturers producing this specific class of high-voltage, pulsed semiconductors. The technology has applications beyond fusion, including defense, medicine, wastewater treatment, and manufacturing.
Financial details of the initiative include:
* **Federal Funding:** $175 million from the Department of Commerce. * **Private Investment:** A fresh $50 million investment from an undisclosed investor. * **R&D Allocation:** Over $100 million for semiconductor and advanced packaging R&D in Washington State, with approximately $80 million supporting design and process development in Vermont.
Helion is collaborating with GlobalFoundries on the Vermont-based R&D. TechCrunch reports that GlobalFoundries has also received more than $80 million in federal funding to advance the manufacturing of gallium-nitride semiconductors.
These hardware advancements support Helion's goal of launching Orion, its first power plant, by 2028 to provide electricity to Microsoft Corp. While Kirtley admitted to TechCrunch that this specific R&D will not be integrated into Orion before its launch due to federal contract negotiations, the improvements will make subsequent plants more competitive.
Beyond energy, Department of Commerce official Bill Frauenhofer stated in a press release that the award will help deliver power to critical applications in grid transmission, advanced energy generation, and defense. Kirtley emphasized that Helion's primary focus remains national security and domestic energy supply.