Washington:The US Commerce Department has announced plans to provide up to $389 million in funding for research and development to four companies focusing on power semiconductors and critical materials. These technologies are intended to support advancements in fusion energy and the development of advanced data centers.

According to Anadolu Agency – English, the funding is part of the CHIPS and Science Act and is aimed at bolstering domestic production capabilities while reducing dependence on foreign suppliers for components crucial to the nation's energy infrastructure.

The intended recipients of the funding include fusion energy companies Helion and Commonwealth Fusion Systems. Helion is expected to receive up to $175 million for the development of high-voltage semiconductors and power modules for fusion generators. Commonwealth Fusion Systems is set to receive up to $85 million to enhance technologies used in plasma heating, fusion diagnostics, and radiation-resistant electronics.

Vertical Semiconductor is projected to receive up to $73 million to further gallium nitride power semiconductors for advanced computing, including a demonstration project for a 2.5-megawatt data center rack. Additionally, materials supplier Sibelco is slated for up to $56 million to develop purification technologies for ultra-high-purity quartz used in semiconductor manufacturing.

The Commerce Department stated that improved power electronics could lead to increased energy efficiency, stronger grid stability, and reduced heat losses, thereby supporting the rising electricity demands from data centers and other critical infrastructure. Bill Frauenhofer, the agency's executive director of semiconductor investment and innovation, emphasized that these awards would assist in advancing technologies for the grid, defense systems, and emerging fusion energy.