Commonwealth Fusion Systems ( CFS ) announced on Thursday that it will receive $85 million from the U.S. government to develop advanced chips for the fusion power generation industry.

Fusion power generation startups have been competing to complete their first demonstration devices, and CFS aims to start its Sparc reactor at some point next year. However, building a reactor is just one step. If fusion startups want to construct dozens of commercial power plants, they will need more durable power electronics equipment and a more robust supply chain.

The company stated that this CHIPS Act reward issued by the US Department of Commerce will also be granted to the government's shares in CFS, and it will help enhance the research and development as well as manufacturing capabilities of semiconductors in the United States.

“In the end, this means a more powerful power plant with lower costs, as well as a stronger American supply chain to build it,” wrote Brandon Sorbom, co-founder and chief science officer of CFS, in a blog post.

The reward of CFS will be used to support five different programs.

The first item is to advance silicon carbide power electronics. These semiconductors are widely used for managing high voltages, with application scenarios ranging from LED, EV to mobile phone base stations and data centers. They are also used in fusion devices, as the superconducting magnets that confine the plasma inside the reactor need to be driven by strong electrical pulses.

CFS will also use this reward to develop the next generation of radio frequency power generators, which are used by the company to heat fusion fuel; at the same time, they will develop advanced electronic devices to achieve faster reactor control and make them capable of withstanding radiation. The latter may help to extend the lifespan of electronic equipment within the fusion power plants, thereby reducing operating costs.

Finally, CFS plans to use part of the CHIPS rewards to upgrade GPU, TPU, and other AI hardware to make them suitable for power plants.

"This funding will help to improve both the U.S. chip and power electronics industries, as well as accelerate the advancement of fusion energy towards integration into the power grid," said Sorbom.