Helion targets double the power output of fusion plants with new semiconductor technology

Fusion energy startup Helion is developing advanced semiconductor technology that could significantly improve the efficiency of its future power plants, with the company claiming that reducing electrical losses could potentially double the power output of its fusion systems.

The US-based company has secured a potential $175 million in federal funding through the CHIPS and Science Act to research, develop and manufacture next-generation semiconductors and power electronics designed specifically for commercial fusion energy.

The three-year funding programme, announced on 22 October 2026, will be accompanied by an additional $50 million in private investment, bringing the total investment associated with the initiative to $225 million. The federal award remains subject to a definitive agreement with the US Department of Commerce.

Cutting electrical losses

Helion’s fusion technology relies on powerful electrical systems to generate the conditions required for nuclear fusion and recover electricity from the resulting reactions.

However, the semiconductor devices used to control and convert electrical energy currently lose approximately 5% to 10% of the electricity passing through them.

Although this might appear relatively small, these losses can accumulate throughout a complex fusion power system, reducing the amount of electricity ultimately available for the grid.

According to Helion chief executive David Kirtley, reducing these losses could have a substantial impact on the performance of its reactors.

The company believes that cutting semiconductor-related losses in half could potentially double the power output of its fusion system, although this is a projection rather than a demonstrated improvement in an operating commercial power plant.

The new research programme will focus on high-voltage semiconductors, advanced power modules and packaging technologies capable of operating efficiently under the demanding conditions found inside fusion energy systems.

Helion says the components it requires are currently available primarily from overseas manufacturers, creating supply-chain challenges as it attempts to scale up production.

New manufacturing facilities planned

The funding will support semiconductor research, manufacturing and testing capabilities across Washington State and Vermont.

More than $100 million is expected to support research and development, advanced packaging and manufacturing activities in Everett, Washington. The expansion is expected to create more than 100 jobs and establish additional domestic manufacturing capacity for advanced power modules.

Around $80 million will support semiconductor tooling, design and process development in collaboration with GlobalFoundries in Burlington, Vermont.

The programme will also support manufacturing automation and improvements to semiconductor packaging, helping Helion develop components that can be produced more efficiently and deployed across multiple power plants.

Developing these capabilities in the United States could help reduce dependence on overseas suppliers while improving the availability and reliability of components needed for commercial fusion energy.

The proposed agreement also includes a financial arrangement under which the US government would receive a $175 million non-voting interest in Helion, based on the company’s Series G preferred-stock valuation, in exchange for the federal award.

Fusion power without conventional turbines

Helion’s approach to fusion differs from conventional nuclear power stations.

Traditional nuclear fission plants generate heat, which is used to produce steam that drives turbines connected to electrical generators.

Helion instead aims to capture electricity directly from its fusion reactions, reducing its reliance on the heat-to-steam-to-electricity conversion process.

Its technology uses a magnetic configuration known as a field-reversed configuration. Fusion fuel is injected into a chamber, heated into plasma and accelerated using magnetic fields. The plasma formations collide and are compressed, creating the extreme temperatures and conditions required for fusion.

Helion uses deuterium and helium-3 as its intended fusion fuel, while its research programme has also demonstrated deuterium-tritium fusion.

As the hot plasma expands against the surrounding magnetic field, it induces an electrical current in nearby coils. The system is designed to recover this energy through electromagnetic induction, with capacitors and power electronics helping manage the rapid electrical pulses.

This approach makes semiconductor performance particularly important. The company must efficiently deliver large amounts of electrical energy to the fusion system and recover as much of that energy as possible.

Improving the performance of these components could therefore increase the amount of usable electricity generated by future reactors. However, Helion must still demonstrate that its complete system can consistently produce more electricity than it consumes, including the energy required to operate the facility.

Microsoft power deal adds pressure

Helion is developing its first commercial-scale fusion power plant, known as Orion, in Washington State.

The company is targeting 2028 for the facility to begin providing electricity under an agreement with Microsoft, placing considerable pressure on its engineers to demonstrate that fusion power can move beyond experimental systems and become a commercially viable energy source.

The new semiconductor programme is intended to improve the efficiency and competitiveness of future Helion power plants. However, the company has acknowledged that the research funded through the new award is unlikely to benefit Orion in time for its initial launch, partly because finalising federal funding agreements can take several months.

Instead, the technology is expected to contribute to subsequent generations of Helion’s reactors, potentially improving their electricity output and operating economics.

Helion’s ambitions come as energy demand continues to grow, particularly from data centres and artificial intelligence infrastructure, increasing interest in energy sources capable of delivering substantial amounts of reliable, low-carbon electricity.

Fusion could eventually offer an alternative to conventional power generation, but significant engineering and commercial challenges remain.

A wider US semiconductor investment programme

Helion is not the only fusion company receiving support for semiconductor research.

The US Department of Commerce has also announced proposed funding for Commonwealth Fusion Systems, which could receive up to $85 million for semiconductor technologies supporting plasma heating, power electronics, diagnostics and radiation-resistant electronics.

Together with proposed awards for Vertical Semiconductor and materials supplier Sibelco, the latest announcements represent up to $389 million in planned research and development funding across four companies.

The programme forms part of a wider effort to strengthen domestic semiconductor manufacturing and develop technologies considered important to energy infrastructure and national security. The government is set to receive minority, non-controlling and non-voting interests in companies receiving the awards.

For Helion, the investment offers an opportunity to address one of the less visible challenges facing commercial fusion: ensuring that the electrical systems surrounding a reactor are efficient enough to make the technology economically competitive.

If its next-generation semiconductors deliver the anticipated improvements, they could help Helion extract more usable electricity from its fusion systems. The ultimate test, however, will be whether the company can translate those improvements into reliable, commercially operating power plants.