Funding through the CHIPS Research and Development Office (CRDO) Will Advance Critical Technology That Unlocks Compute Power for U.S. AI Data Centers

Vertical Semiconductor, a power semiconductor company, today announced 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 incentives are expected to accelerate research and development of next-generation vertical gallium nitride (GaN) power transistors, unlock domestic production of this technology, and strengthen U.S. leadership in power infrastructure for artificial intelligence (AI) and high-performance computing.

Spun out of MIT, Vertical Semiconductor is developing vertical GaN FinFET technology that drives extreme efficiency and power density in power systems for AI data centers and critical energy infrastructure. The company is scaling up a transformational technology originally invented with the support of the U.S. Department of Energy’s Advanced Research Projects Agency–Energy (ARPA-E).

“Power is the most significant bottleneck in the build-out of AI infrastructure,” said Cynthia Liao, CEO and co-founder of Vertical Semiconductor. “The CHIPS R&D award will accelerate Vertical Semiconductor’s R&D and commercialization initiatives for vertical GaN, which will expand American compute capacity within existing power constraints.”

Announcement Underscores Vertical GaN as a High-Impact Technology of Strategic Importance to the U.S.

Broad adoption of vertical GaN across the nation will open up significant compute capacity with the same grid connection.

“The Trump Administration is accelerating American semiconductor innovation to enhance our domestic energy and power resources,” said Secretary of Commerce Howard Lutnick. “This investment expands domestic research, secures critical supply chains, and creates high-paying American jobs.”

Led by Vertical Semiconductor in collaboration with commercial partners, this vertical GaN R&D and commercialization initiative would culminate in a first-of-its-kind 2.5-MW AI rack designed to reduce energy losses by 30%, shrink physical footprint by 50%, and convert previously wasted electricity into deployable compute capacity.

“This CHIPS R&D award will secure domestic production of next-generation vertical GaN technology and bolster U.S. leadership in advanced power semiconductor devices,” said Bill Frauenhofer, Executive Director of Semiconductor Investment and Innovation at the Department of Commerce. “Accelerating domestic R&D for this technology will strengthen America's ability to convert and deliver power for the grid and super intelligence data centers.”

The project would deploy these transistors across the full AI data center power chain, driving compounding performance benefits from the grid to the compute.

About Vertical Semiconductor

Vertical Semiconductor is reinventing power conversion for modern computing infrastructure. Spun out of MIT, the company has developed a scalable vertical GaN semiconductor platform that enables direct, high-efficiency power conversion – cutting energy loss, reducing heat, and unlocking new performance in AI data centers. As power delivery becomes a critical bottleneck at scale, Vertical Semiconductor is building the foundational power layer for the next era of compute. Learn more at www.verticalsemi.com or follow us on LinkedIn.

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“The CHIPS award will accelerate Vertical Semiconductor’s R&D and commercialization initiatives for vertical GaN, which will expand American compute capacity within existing power constraints," said Vertical Semiconductor CEO and co-founder Cynthia Liao.