Commonwealth Fusion Systems has signed a letter of intent for a proposed US$85 million federal research and development award under the CHIPS and Science Act. The agreement with the U.S. Department of Commerce will advance semiconductor technologies used in commercial fusion energy. The funding signals growing federal support for fusion power and the domestic chip industry.
Federal Award Under the CHIPS Act
The CHIPS and Science Act is a bipartisan 2022 law designed to strengthen the U.S. semiconductor sector. The Department of Commerce CHIPS Research and Development Office funds breakthrough innovations critical to national competitiveness. This proposed award would directly support CFS as it accelerates development of its ARC fusion power plants.
Five Core Technology Initiatives
CFS plans to direct the proposed funding toward five initiatives spanning advanced power electronics and control systems. The work includes developing silicon carbide power electronics that manage high voltages in fusion machines. It also covers next-generation radio frequency power generators and radiation-hardened control electronics that enable longer equipment lifespans.
Artificial Intelligence and Robotic Systems
The R&D effort will adapt artificial intelligence hardware such as GPUs and TPUs for use in commercial power plants. CFS will also develop semiconductor technologies for robotic maintenance systems that improve ARC plant performance. Advanced fast and embedded controllers will help manage fusion plasma and plant systems at commercial scale.
Strengthening the Domestic Supply Chain
CFS expects the project to catalyze a robust industrial base by attracting additional suppliers and partners to the fusion sector. The proposed award supports the semiconductor supply chain needed to scale commercial fusion on an accelerated timeline. The agreement also grants the U.S. government a stake in CFS, aligning public and private interests in the emerging industry.
Executive and Leadership Commentary
Bob Mumgaard, chief executive officer and co-founder of CFS, described the award as an important opportunity to drive development of fusion-specific semiconductors and power electronics. Secretary of Commerce Howard Lutnick said the Trump Administration is accelerating American semiconductor innovation to enhance domestic energy resources. He added that the investment expands research, secures critical supply chains, and creates high-paying American jobs.
Company Momentum and Fusion Timeline
Commonwealth Fusion Systems is the world's largest private fusion company and has raised more than US$4 billion in capital since it was founded in 2018. Its SPARC project is designed to generate net energy and serve as a proof point for the company's ARC power plant design. CFS has said it aims to turn on the SPARC reactor sometime next year, a milestone that would help validate the technology for commercial use.
Implications for Commercial Fusion Energy
The semiconductor advances supported by the award could make ARC power plants more capable, economical, and supported by a stronger U.S. supply chain. More durable power electronics and radiation-hardened components may reduce operating costs over the life of a commercial fusion plant. These improvements address key technical barriers that fusion developers must clear before deploying dozens of power plants.
The proposed US$85 million CHIPS Act award represents a significant step for both fusion energy and domestic semiconductor innovation. By investing in power electronics, artificial intelligence hardware, and radiation-hardened controls, CFS aims to overcome key technical barriers to commercial deployment. The collaboration positions the United States to lead in next-generation energy technology and advanced manufacturing.