U.S. Awards $389 Million for Power Chip Research
The Commerce Department is taking equity stakes in four companies to accelerate domestic power semiconductor development.
Updated on Oct. 22, 2026 in Semiconductors
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The U.S. Commerce Department announced plans to award $389 million in research and development funding to four companies focused on power semiconductor devices and materials. This development represents the latest set of grants issued from a $10 billion federal fund established in 2022.
Why it matters
The funding aims to accelerate domestic semiconductor innovation to strengthen energy and power resources within the United States. By securing non-voting equity stakes in these firms, the government intends to link public R&D investment more directly to national industrial performance.
The Commerce Department is allocating $389 million toward power semiconductor research, a segment of the broader $10 billion R&D fund authorized by Congress. This follows 19 prior grants awarded in recent months to bolster critical materials and device development.
The players
U.S. Commerce Department
The federal agency overseeing the execution of the $10 billion semiconductor research fund.
The details
The Department is issuing letters of intent to fund research focused on power semiconductors, which regulate and convert electricity in electronic systems. To ensure long-term alignment, the government is taking minority, non-voting equity stakes in these companies. This process is part of a larger mandate to maintain competitive domestic production of power-efficient chips that serve as the backbone for modern energy grids and power resources.
Timeline
2022: Congress approved the $10 billion R&D fund.
Recent months: The Department awarded 19 R&D grants to semiconductor firms.
October 22, 2026: The Commerce Department announced $389 million in new funding.
The Tech Race
This move continues the rollout of the 2022 congressional authorization of the $10 billion semiconductor R&D fund. It marks a push to secure domestic supply chains for high-performance power electronics that remain a critical bottleneck in global energy infrastructure.
The impact on domestic energy infrastructure depends on when these companies translate the funding into tangible power chip advancements. As the U.S. government takes equity, the success of these firms in refining domestic materials will directly affect future availability of high-power components.
The takeaway
The government is shifting toward an equity-based investment model to influence the R&D trajectory of domestic power chip manufacturers. Watch for the public disclosure of the specific recipients to assess how these firms plan to integrate these funds into their production roadmaps.
Further reading
For more on federal initiatives, see the latest developments in Semiconductors.
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