US to award $389 million in R&D funds for power semiconductors, critical materials

WASHINGTON, Oct 22 (Reuters) - The US Commerce Department said on Thursday it plans to award $389 million in ‌research and development funding to four companies working ‌on power semiconductor devices and critical materials, with the government receiving ​minority equity stakes.

The department in recent months has awarded 19 R&D grants to semiconductor firms from a $10 billion fund approved by Congress in 2022. Commerce Secretary Howard Lutnick ‌said in a ⁠statement the awards will "accelerate American semiconductor innovation to enhance our domestic energy and power resources."

The ⁠department said it had signed letters of intent to provide four new awards:

• Helion will receive up to $175 ​million to ​develop high-voltage power semiconductors ​and advanced energy power ‌modules

in fusion power generation. The semiconductors will power and use energy from magnets driving Helion fusion generators.

• Commonwealth Fusion Systems will receive up to $85 million to develop semiconductors for radio-frequency plasma heating, power electronics, fusion diagnostics, and ‌radiation-hardened electronics.

• Vertical Semiconductor will ​receive up to $73 million to ​advance its vertical gallium ​nitride power semiconductors for use in AI ‌data center racks.

• Sibelco will ​receive up ​to $56 million to develop next-generation purification for ultra-high-purity quartz used in the semiconductor supply chain.

The department said ​as a condition ‌of funding, the US government will receive minority, ​non-controlling and non-voting equity stakes.

(Reporting by David ​Shepardson; Editing by Andrew Cawthorne)