Fusion company gets $85 million to make specialized chips

The U.S. Department of Commerce has awarded $85 million to Commonwealth Fusion Systems. The money comes from the CHIPS Act and includes a government equity stake in the company. CFS announced the deal on Thursday. It will use the funds to build advanced semiconductors specifically for fusion power plants.

Fusion startups are racing to complete their first demonstration machines. CFS plans to activate its Sparc reactor in 2027. While a single reactor proves the technology works, building dozens of commercial plants requires durable power electronics. It also requires a reliable domestic supply chain.

The award targets five specific development projects. The first involves silicon carbide power electronics. These semiconductors manage high voltages and are already used in electric vehicles, data centers, and cell phone base stations. In fusion reactors, they handle the intense electrical bursts needed to drive superconducting magnets. These magnets confine the plasma inside the machine.

CFS will also work on next-generation radio-frequency power generators. These devices heat the fusion fuel. A third project focuses on advanced electronics that allow for faster reactor control. These components are designed to withstand radiation. The company says this durability will extend the life of parts inside a power plant, which should lower operating costs.

The final initiative involves adapting AI hardware for power plant use. This includes modifying GPUs and TPUs. Brandon Sorbom, CFS co-founder and chief science officer, noted the dual benefit of the funding. He wrote that it will strengthen the U.S. supply chain while making power plants more economical.

Sorbom stated that the investment helps improve the chip and power electronics industries. At the same time, it accelerates the progress of fusion energy toward the electrical grid. The agreement was issued by the Department of Commerce. It aims to expand domestic manufacturing capacity for these specialized components.