# Commerce Funds Power Semiconductor R&D

The U.S. Department of Commerce announced an $85 million CHIPS Act award to Commonwealth Fusion Systems on October 23, 2026, for semiconductor research and manufacturing supporting fusion power plants. Separately, Commerce has signed letters of intent for up to $389 million in planned CHIPS R&D awards to four companies working on power semiconductors and critical materials for energy infrastructure, advanced computing, and fusion applications. The awards include minority, non-controlling, non-voting federal equity stakes. The signals identify no open solicitation or supplier-submission process, so the near-term procurement relevance is potential downstream demand rather than a current bid opportunity.

- CFS’s work includes silicon-carbide power electronics, radio-frequency power generators, radiation-hardened reactor controls, and adapting GPUs and TPUs for fusion facilities. Suppliers with relevant chip, electronics, materials, and manufacturing capabilities may find downstream opportunities.
- The planned portfolio indicates federal support for domestic power-semiconductor and critical-material capacity across energy and advanced-computing applications. Contractors can assess where their capabilities fit potential supply-chain or system-integration needs.
- Companies should distinguish the announced CFS award from the broader planned award portfolio and avoid treating the letters of intent as completed awards or open solicitations.

**Jurisdictions:** federal
**Industries:** Information Technology, Energy & Utilities
**Topics:** Grants & Funding, Digital Infrastructure
**Published:** October 23, 2026

### Government Entities
- U.S. Department of Commerce (Commerce)
- CHIPS Research and Development Office (CHIPS R&D Office)
- National Institute of Standards and Technology (NIST)

### Vendors
- Commonwealth Fusion Systems (awardee)
- Helion (planned awardee)
- Vertical Semiconductor (planned awardee)
- Sibelco (planned awardee)
- GlobalFoundries (planned awardee)

### Key Quotes
> expand domestic research, secure critical supply chains, and create high-paying American jobs.
> — Howard Lutnick, Secretary of Commerce

### Sources
- [Commonwealth Fusion Systems gets $85M to build better fusion-ready semiconductors | TechCrunch](https://techcrunch.com/2026/10/23/commonwealth-fusion-systems-gets-85m-to-build-better-fusion-ready-semiconductors) - TechCrunch
- [Commerce Plans $389M CHIPS R&D Awards for Power Chips](https://www.executivegov.com/articles/commerce-389m-chips-rd-awards-power-semiconductors-fusion) - ExecutiveGov