U.S.-based startup xLight, operating out of Silicon Valley, has raised $40 million in funding to begin developing a new generation laser prototype for use in chip manufacturing. This laser technology has the potential to significantly reshape the global chip industry and boost the U.S.’s position in its ongoing technological competition with China.
The laser being developed by xLight is built on advanced technologies originally used in U.S. national laboratories, particularly in high-energy particle accelerators. These lasers lie at the core of extreme ultraviolet (EUV) lithography machines, which are essential in the production of the world’s most advanced semiconductor chips. EUV technology allows for the creation of smaller, faster, and more powerful semiconductors.
A Vital Leap for Chips and Global Technology
The pace of innovation in the chip industry is critical for advancements in high-tech sectors like artificial intelligence (AI). As long as leading chipmakers like Nvidia can secure this essential equipment, progress in AI remains possible. xLight’s goal is to enable chip fabrication plants (fabs) to manufacture semiconductor wafers more quickly and affordably.
xLight’s CEO and CTO, Nikolas Kelez, emphasized that EUV laser systems are the most expensive equipment in fabs, yet also their most essential. Any breakthrough in this area could drastically impact both productivity and overall manufacturing costs.
A Strategic Move in the U.S.–China Tech Race
While EUV machine development spans decades, the Dutch company ASML remains the only global supplier. ASML is currently collaborating with xLight on the prototype. Over the years, the U.S. government has implemented strict export controls to prevent EUV technology from reaching China, making it one of the most important export control policies for both the U.S. and Europe.
Meanwhile, China is rapidly investing in this space and has revealed efforts to develop its own EUV laser technology through Huawei’s close manufacturing partners. Chinese scientists have also been presenting research at international conferences in directions similar to xLight’s approach.
Pat Gelsinger, former CEO of Intel and now Executive Chairman of xLight’s Board of Directors, noted that allowing U.S.-based Cymer—the original EUV laser innovator—to become a European company was a major strategic mistake. xLight now aims to reverse that error by building its equipment using national laboratories and the supply chains of the U.S. and its allied countries.
Gelsinger stressed: "We’re either going to manufacture this here or it’s going to be made elsewhere. China is investing heavily in this sector. There’s a clear historical message here: Let’s get this right."
Investment and Strategic Partners
xLight’s recent funding round was led by Playground Global, with participation from Boardman Bay Capital Management, Morpheus Ventures, Marvel Capital, and IAG Capital Partners.
