Helion is seeking up to $175 million in federal support for semiconductor and power-module work, a proposed investment aimed at improving fusion equipment and expanding U.S. chip supply capacity.
Helion says it would combine a potential award of up to $175 million with $50 million in private investment, for a proposed total of $225 million. Helion and the U.S. Department of Commerce have signed a letter of intent, but a definitive agreement is still required before the award is final.
The proposed terms would give the federal government a minority, noncontrolling and nonvoting equity interest in Helion. Helion values that stake at $175 million using its latest Series G preferred-stock valuation. Commerce says an equity interest is a condition of the awards and is intended to improve returns for taxpayers.
Helion says its Everett, Washington, work would account for more than $100 million and support over 100 jobs. A separate effort with an industry partner in Burlington, Vermont, would involve about $80 million for semiconductor tooling, design and process development. The company also plans packaging systems and manufacturing automation.
Helion says the semiconductor performance its fusion equipment requires is currently available only from overseas manufacturers. Commerce has said its awards are intended to strengthen domestic supply chains. In an Oct. 22 notice, the Commerce Department's National Institute of Standards and Technology (NIST) reported letters of intent for research and development awards of up to $389 million involving four companies.
Helion CEO David Kirtley told TechCrunch that halving losses in the power electronics could double the fusion system's output. The company expects its Orion plant to begin initial operations in 2028. The Microsoft power purchase agreement Helion signed in 2023 sets at least 50 megawatts as a target after a one-year ramp-up; Axios reported in September that the plant would reach full power no earlier than 2029 or 2030.
The next step for the proposed federal funding is a definitive award agreement. The announcements gave no date for that agreement.
