U.S. Commerce Department Proposes $389 Million for Fusion Semiconductors and Critical Materials

Highlights

• Four CHIPS Act R&D awards totaling $389M target fusion power electronics, gallium nitride devices, and semiconductor-grade quartz processing.
• Helion and Commonwealth Fusion Systems receive the largest proposed awards, but their magnetic technologies do not create new demand for rare earth elements like neodymium or dysprosium.
• Sibelco's $56M proposal focuses on ultra-high-purity quartz processing, a semiconductor feedstock play rather than rare earth separation.
• Government non-voting equity stakes introduce a new taxpayer upside dimension, though all awards remain subject to final agreements.
• These investments strengthen adjacent supply chains but leave U.S. rare earth cracking, separation, and magnet manufacturing vulnerabilities unresolved.