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Helion Secures Funding for Advanced Semiconductors

Fusion energy startup Helion has received substantial federal backing and private investment to develop advanced semiconductors aimed at dramatically increasing power plant efficiency.

Radwan AbdulhadiEditor and technology writer

Published: October 25, 2026 · Updated: October 25, 2026 · 3 min read

Helion Secures Funding for Advanced Semiconductors — Image: TechCrunch

Federal Funding and Private Investment

Fusion startup Helion has been awarded $175 million in federal funding to research, develop, and manufacture advanced semiconductors and power electronics for its fusion power plants, according to an announcement by the company. The three-year award was issued by the Department of Commerce under the CHIPS Act, a law designed to bolster semiconductor research, development, and manufacturing within the United States.

Alongside this federal award, the company announced a fresh $50 million private investment, though the specific investor was not disclosed. With these financial updates, total funding raised by Helion has surpassed $3.2 billion, positioning the company as the second-best-funded fusion startup in the industry.

Semiconductor Efficiency and Power Output

Currently, the power devices used in energy systems lose roughly 5% to 10% of the electricity flowing through them. While these losses may appear minor, they compound quickly within complex frameworks like those built by Helion.

David Kirtley, co-founder and CEO at Helion, explained to TechCrunch that cutting those losses in half effectively translates to doubling the power output of the fusion system. This semiconductor efficiency plays a vital role in Helion's direct energy conversion approach, which harvests electricity directly from fusion reactions instead of using heat to spin traditional steam turbines.

Manufacturing Plans in Washington and Vermont

The newly funded production line will be established in Washington State, marking the first facility in the United States dedicated to producing this specific class of high-voltage and pulsed semiconductors. Beyond fusion power, these components find applications in manufacturing, wastewater treatment, medical fields, and defense systems.

Of the total award allocation, more than $100 million will be designated for semiconductor and advanced packaging research and development in Washington State. Meanwhile, approximately $80 million will support research and development efforts in Vermont focused on advanced semiconductor tooling, design, and process development in partnership with GlobalFoundries.

The federal award also grants the United States government a $175 million non-voting interest in the startup, determined by the company's Series G valuation.

Timeline and Commercialization Goals

Helion is actively working to complete its first commercial power plant, named Orion, to meet a strict 2028 deadline to supply electricity to Microsoft from the grid. However, Kirtley noted that the research and development funded by this new semiconductor award will not integrate into the Orion plant in time for its initial launch, as federal contract negotiations require considerable time.

Instead, the technological advancements are expected to improve the operational efficiency of subsequent Helion power plants, boosting their overall competitiveness in demanding electricity markets. Kirtley emphasized that domestic energy supply, national security through energy dominance, and broader energy security remain the primary focus for the enterprise.