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US Commerce to Award Up to $73 Million to Vertical Semiconductor for GaN Power Transistors for AI Data Centers
Vertical Semiconductor signed a letter of intent with the US Commerce Department's CHIPS R&D Office for up to $73 million in CHIPS Act funding to advance vertical gallium nitride power transistors for AI data center power delivery.
Why it matters
Vertical Semiconductor announced on October 22 that it has signed a letter of intent with the U.S. Department of Commerce's CHIPS Research and Development Office (CRDO) to receive up to $73 million in federal incentives under the CHIPS and Science Act. The proposed funding would accelerate R&D and commercialization of next-generation vertical gallium nitride (GaN) power transistors, aimed at improving electricity delivery for AI data centers and high-performance computing and unlocking domestic production.
Technical details
Spun out of MIT, the company is developing a vertical GaN FinFET platform designed to deliver greater power efficiency and higher power density than conventional power-conversion approaches: cutting energy losses during conversion, limiting heat, and shrinking the footprint of electrical infrastructure. The company says such improvements could let data center operators deploy more computing capacity without proportional increases in grid power.
Company statement
"Power is the most significant bottleneck in the build-out of AI infrastructure," said CEO and co-founder Cynthia Liao. She said the CHIPS R&D award will accelerate R&D and commercialization of vertical GaN to expand American compute capacity within existing power constraints. The letter of intent covers proposed funding; final awards remain subject to the Commerce Department's review process.
Sources
Vertical Semiconductor announcement via Business Wire/Morningstar (22 Oct 2026); Pulse2 (22 Oct 2026).
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