Commercializing advanced power semiconductor technology for AI data centers — driving a 30% improvement in efficiency and 50% reduction in carbon…

Vertical Semiconductor signs letter of intent with U.S. Department of Commerce for $73 million in CHIPS funding to accelerate R&D of Vertical GaN power transistors. Funding through the CHIPS Research and Development Office (CRDO) Will Advance Critical Technology That Unlocks Compute Power for U.S. AI Data Centers BOSTON-(BUSINESS WIRE)-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. "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. Share 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. Vertical Semiconductor. Release Summary Vertical Semiconductor signed an LOI for up to $73 million with the U.S. Department of Commerce to accelerate R&D of vertical GaN power transistors. Release Versions

Five Cambridge and Somerville climate tech companies receive state tax incentive. The companies will be able to put this money toward expansion through advancing research and projects, hiring more employees and offering stipends Somerville's Form Energy received the majority of a $6 million tax incentive for job creation granted to five climate tech innovation companies in Cambridge and Somerville. Form, which produces high-capacity batteries used for storing renewable energy at utility scale, earlier this year was identified as the recipient of a billion-dollar contract for energy storage from Google, and recently received $750 million in venture capital to help expand its battery factory in West Virginia. Form received $5.6 million in credits from the Massachusetts Clean Energy Center, which gave $27.2 million in tax incentives to 18 companies across the state to create more jobs. In addition to Form, four other local companies received grants. Pascal Technologies and Mantel Capture in Cambridge as well as Eden Geopower in Somerville received $100,000 in tax credits. Somerville's Vertical Semiconductor received $120,000. Some recipients also receive incentives for capital investment, specifically for leasing or buying facility space. MassCEC selected companies with a clear business plan, evidence of continued revenue gains, and were creating technology that would hinder the impacts of climate change and emissions throughout the world," said Mike Condon, the director of economic growth and partnership at MassCEC, in an interview with Cambridge Day. Condon said MassCEC's grant program, modeled after the Mass Life Sciences Center's program, is a way to help grow and retain climatetech companies in Massachusetts. Form Energy. The Somerville-based company Form Energy produces iron-air batteries designed to deliver electricity for 100 hours to create a reliable electric grid year-round. The $5.6 million incentive allowed Form to hire new employees, bringing the company's employee count to 240. Form was originally developed at MIT before it was further developed at the Somerville climatetech incubator Greentown Labs as well as the Cambridge incubator The Engine. Eden Geopower. Eden Geopower, located in Somerville, developed a "first-of-its-kind" electric reservoir stimulation technology, which uses electric pulse drilling to increase the recovery of natural resources in the ground. Overall, the technology aims "to extract natural resources out of the ground, whether its critical minerals, geothermal energy, geologic hydrogen," said Desi Hambrock, Eden Geopower Chief of Staff. The $100,000 tax incentive allows Eden Geopower "to execute our goals more quickly" by hiring more employees, Hambrock said. Overall, Eden's goal is to develop and generate "energy and resources in a way that is very low cost, but at the same time, has huge environmental impact," as is the goal of all climatetech companies, Hambrock said. Mantel Capture. Mantel Capture in Cambridge created a carbon capture system that uses molten borate salt to capture greenhouse gases in industrial boilers, kilns, and furnaces before they enter the atmosphere. The MassCEC incentive will be "super helpful" as Eden builds a bigger team at its facility at 750 Main Street in Cambridge, said Danielle Rapson, the chief operating officer of Mantel Capture. Particularly, tax incentives "really help" Eden give their interns full-time jobs, she said. Vertical Semiconductor. Located in Somerville, Vertical Semiconductor, which was originally started at MIT, is developing a semiconductor power chip that reduces energy losses in data centers. The power chip, made with vertical gallium nitride, essentially makes power systems "much more efficient," said Cynthia Liao, the co-founder and CEO of Vertical Semiconductor. The power chip reduces energy losses inside a data center by about 80 percent, Liao said. She said right now, 20 to 30 percent of energy in a data center never makes it to the center's computers. Liao is "super excited" about the $120,000 tax incentive because it allows Vertical Semiconductor to create new semiconductor engineering and research and development positions and offer stipends for employees who relocate to Somerville. Pascal Technologies. Pascal Technologies is developing efficient, non-polluting refrigerants that allow HVAC systems to put less strain on the electric grid. More efficient refrigerants are needed because "as the world needs more and more cooling, the amount of super-polluting fluorinated gas refrigerants used in these systems will increase while the extra energy usage will strain our electrical grid," said Adam Slavney, co-founder and CEO of Pascal Technologies. Tax incentives generally allow the Cambridge-based company to "offset the high cost-of-living," Slavney said. The MassCEC incentive specifically allowed Pascal to hire an additional employee, bringing its total employees to 15. A stronger. Please consider making a financial contribution to maintain, expand and improve Cambridge Day. Cambridge Day is now a 501(c)(3) nonprofit and all donations are tax deductible. Please consider a recurring contribution.