The US Commerce Department said Thursday it plans to provide up to $389 million in research and development funding to four companies working on power semiconductors and critical materials, including technologies designed to support fusion energy and advanced data centers.

The awards, announced through letters of intent under the CHIPS and Science Act, aim to strengthen domestic production capabilities and reduce reliance on overseas suppliers for components essential to the country's energy infrastructure, it said.

“The Trump Administration is accelerating American semiconductor innovation to enhance our domestic energy and power resources,” said Commerce Secretary Howard Lutnick. “These investments expand domestic research, secure critical supply chains, and create high-paying American jobs.”Fusion energy companies Helion and Commonwealth Fusion Systems are among the intended recipients.

Helion could receive up to $175 million to develop high-voltage semiconductors and power modules for fusion generators, while Commonwealth Fusion Systems is set to receive up to $85 million for technologies used in plasma heating, fusion diagnostics and radiation-resistant electronics.

Vertical Semiconductor could receive up to $73 million to advance gallium nitride power semiconductors for advanced computing, including a demonstration project targeting a 2.5-megawatt data center rack.

Materials supplier Sibelco is slated for up to $56 million to develop purification technologies for ultra-high-purity quartz used in semiconductor manufacturing.

The agency said improved power electronics could increase energy efficiency, strengthen grid stability and reduce heat losses, supporting growing electricity demand from data centers and other critical infrastructure.

Bill Frauenhofer, the agency’s executive director of semiconductor investment and innovation, said the awards would help advance technologies for the grid, defense systems and emerging fusion energy.