# Commerce signs four CHIPS letters of intent for up to $389m in power semiconductor R&D

> The Department of Commerce signed four non-final CHIPS R&D letters of intent on 22 October, with proposed awards spanning power devices, fusion electronics, vertical gallium nitride and high-purity quartz.

- Topic: Technology
- Subjects: Semiconductors, Semiconductor materials, Electricity, Power grids, Artificial intelligence, Data centres, Critical minerals
- Event date: 2026-10-22
- First published on EPC Feed: 2026-10-25T20:55:46.165Z
- Updated: 2026-10-25T20:55:46.165Z
- Value: USD 389,000,000 (Up to $389 million across four signed letters of intent; proposed awards, not final awards.)
- Countries: United States
- Page: https://epcfeed.com/news/us-chips-389m-power-semiconductor-rd-lois


The U.S. Department of Commerce announced four letters of intent on 22 October for up to US$389 million of research and development support under the CHIPS and Science Act. The package covers power semiconductors, electronics for fusion applications and high-purity quartz. Letters of intent outline proposed support; the announcement does not constitute a completed disbursement.

## Power electronics and the award structure

Commerce assigned up to US$175 million to Helion for high-voltage semiconductors and power modules for pulsed-power fusion systems. Commonwealth Fusion Systems was identified for up to US$85 million for plasma-heating, diagnostic and radiation-hardened electronics. The department said a minority, non-controlling, non-voting government equity stake in each recipient would be a condition of the awards.

The federal programme links power conversion with grid modernisation and electricity-intensive infrastructure. These research objectives concern the equipment that controls and delivers power, rather than an announcement of new operating generation capacity.

## Vertical gallium nitride for computing power

Vertical Semiconductor’s own announcement describes its proposed US$73 million project as development of vertical gallium nitride transistors. The MIT spin-out says the underlying technology originated with support from the Department of Energy’s ARPA-E programme. Its objective is to apply the devices across the power-delivery chain serving AI computing.

The company’s proposed demonstration is a 2.5 MW AI rack designed to cut energy losses by 30% and physical footprint by 50%. Those are design targets stated by the developer, rather than independently verified operating results. The project combines semiconductor research with a system-scale test of how the devices could support computing infrastructure.

## Quartz processing and a pilot facility

Sibelco separately confirmed a letter of intent for up to US$56 million to develop high-purity quartz processing in the United States. Its proposed research has four parts: new leaching techniques, new hot-chlorination techniques, product engineering, and a pilot and demonstration facility for testing and scaling processes.

The company identifies high-purity quartz as a raw material for components used in semiconductor manufacturing. Its work therefore addresses the material-processing stage of the supply chain rather than chip fabrication itself. Sibelco said the proposed award remained subject to due diligence, negotiations and internal government approval. That qualification separates the research proposal from a final funding agreement and construction commitment.

## Sources

1. [Department of Commerce Announces Letters of Intent With 4 Companies for $389 Million of R&D Awards to Strengthen America’s Energy Semiconductor Supply Chain](https://www.nist.gov/news-events/news/2026/10/department-commerce-announces-letters-intent-4-companies-389-million-rd). Government source, NIST / U.S. Department of Commerce, Published 2026-10-22, Read 2026-10-25.
2. [Vertical Semiconductor details CHIPS letter of intent for up to $73 million](https://www.verticalsemi.com/articles/oct2026-press-release-vertical-semiconductor-73m-loi-crdo). Company release, Vertical Semiconductor, Published 2026-10-22, Read 2026-10-25.
3. [Sibelco and U.S. Department of Commerce sign letter of intent for up to $56 million](https://www.sibelco.com/en/news/sibelco-and-u-s-department-of-commerce-sign-letter-of-intent-for-up-to-56-million-in-chips-act-funding-to-advance-high-purity-quartz-innovation-for-semiconductor-manufacturing-in-the-united-states). Company release, Sibelco, Published 2026-10-22, Read 2026-10-25.