US eyes CHIPS Act deal for fusion startup Helion

Helion Energy is lining up a massive federal boost. On Thursday, the fusion startup signed a letter of intent for up to $175 million in CHIPS Act funding. As part of the deal, the US Commerce Department would get a non-voting stake in the company. This means the government would have a financial interest in Helion's success without having a say in how it's run.

The proposed award is meant for high-voltage semiconductors that control and recover electricity in Helion's fusion systems. Helion says domestic development could improve efficiency and reliability and reduce dependence on overseas suppliers. The research and manufacturing work would take place in the United States.

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Will the government actually sign off on this? The deal is still a proposal and remains to be finalized. If it goes through, it marks a major shift. The US government would be taking a piece of the frontier energy industry.