Helion Seeks Up to $175 Million in Federal Fusion Chip Funding

Helion signed a letter of intent with the U.S. Department of Commerce for up to $175 million in federal research funding for semiconductors and power modules for its fusion systems.

The company plans to pair the proposed award with $50 million in private investment, for a stated combined total of $225 million. The federal funding is not final, and a definitive award agreement has yet to be signed.

The National Institute of Standards and Technology (NIST), part of the Commerce Department, announced Oct. 22 that letters of intent had been signed for up to $389 million in research and development awards across four companies.

Under Helion’s proposed terms, Commerce would receive a minority, non-controlling, non-voting equity stake valued at $175 million. The valuation is based on Helion’s latest Series G preferred-stock valuation.

Helion’s project plans include more than $100 million for semiconductor and advanced-packaging research in Everett, Washington, where more than 100 jobs are expected. About $80 million is planned for semiconductor tooling, design and process work with an industry partner in Burlington, Vermont. The planned work also includes packaging and manufacturing automation.

Helion’s pulsed-power systems use electrical equipment to switch and recover energy. Helion CEO David Kirtley said cutting power-electronics losses in half could double the fusion system’s output.

Helion expects Orion to begin initial operations in 2028. The plant is intended to supply 50 megawatts under the power purchase agreement Helion signed with Microsoft in 2023. The proposed federal award still requires a definitive agreement.