U.S.-backed chip startup xLight aims to raise $350 million for an EUV alternative

[Daniel Nenni]

The U.S.-backed chip startup xLight is negotiating to raise $350 million, with Boardman Bay Capital Management and Bain Capital expected to lead the round. The U.S. government has invested $150 million in xLight through the CHIPS and Science Act, bringing xLight’s total funding to approximately $200 million.

Former Intel CEO Pat Gelsinger serves as executive chairman of xLight, and his firm, Playground Global, invested in xLight in 2025. xLight plans to lobby ASML, TSMC, Intel, and Micron Technology to participate in this financing round, aiming to develop alternative EUV lithography technologies.

ASML CEO Christophe Fouquet revealed that ASML is collaborating with xLight on technology demonstrations. xLight intends to build its first prototype site in Albany, New York, and has signed a non-binding project financing agreement worth $4.2 billion with lenders. Substrate is also developing X-ray lithography technology, directly competing with ASML.

Company Overview & Goal
xLight aims to invent an alternative light source for semiconductor manufacturing that lowers the cost and time required to produce advanced AI server chips.

• The Problem: Current EUV lithography machines (primarily manufactured by ASML) rely on laser-produced plasma, which xLight cites as a major bottleneck.
• The Solution: The startup is building free-electron lasers to beam ultraviolet light for printing microscopic patterns on silicon wafers.

Recent Developments

• Executive Leadership: Former Intel CEO Pat Gelsinger took over as executive chairman in March.
• Funding: The company is currently in talks with firms like Bain Capital and Boardman Bay Capital Management to lead the new $350 million funding round.
• U.S. Stake: The $150 million CHIPS Act award makes the U.S. government one of the startup's largest shareholders.
• Prototype: xLight has signed nonbinding agreements securing up to $4.2 billion in project financing to build its facilities, with the first prototype being developed in Albany, New York. The first working light source is targeted for 2028.

U.S.-Backed Chipmaking Startup Chaired by Former Intel CEO Is Raising $350 Million

XLight, a startup developing advanced lasers for semiconductor manufacturing, is in talks to raise $350 million in funding from a pair of investment firms just weeks after receiving substantial investment from the U.S. Department of Commerce, according to the company’s verbal and written pitch ...

www.theinformation.com

 

[Fred Chen]

Higher EUV power is definitely not pellicle-compatible, and likely will become resist-incompatible as well.

 

[user nl]

Recent Developments

• Executive Leadership: Former Intel CEO Pat Gelsinger took over as executive chairman in March.
• Funding: The company is currently in talks with firms like Bain Capital and Boardman Bay Capital Management to lead the new $350 million funding round.
• U.S. Stake: The $150 million CHIPS Act award makes the U.S. government one of the startup's largest shareholders.
• Prototype: xLight has signed nonbinding agreements securing up to $4.2 billion in project financing to build its facilities, with the first prototype being developed in Albany, New York. The first working light source is targeted for 2028.

U.S.-Backed Chipmaking Startup Chaired by Former Intel CEO Is Raising $350 Million

XLight, a startup developing advanced lasers for semiconductor manufacturing, is in talks to raise $350 million in funding from a pair of investment firms just weeks after receiving substantial investment from the U.S. Department of Commerce, according to the company’s verbal and written pitch ...

www.theinformation.com

I recently talked at an event with the former, now retired, ASML CEO about this xLight initiative. My impression is that ASML does not feel threathened by this FEL stuff at all. ASML also looked into FELs for many many years.

His as was my conclusion (already before) are the same: you need redundancy, so a second FEL for each xLight setup (that delivers EUV light to say 10 EUV steppers), in case the first FEL has major down time. This is a very expensive redundancy!!

And presently, ASML ships every EUV machine with a (soon) 800-1000 Watt EUV source. They ship about 60-100 EUV machines EVERY YEAR. So, they bring some 60-100 kWatt EUV source power on the Fab market EVERY year.

A couple of 10 kWatt FELS from xLight is not going to move the needle very much.....and who is going to integrate them with the scanner? Is xLight going to build EUV-scanners/steppers as well? ASML will probably not spend too much time with xLight on adapting their tools for xLight FEL EUV sources would be my guess.

My personal note, PG is now steering the strategy on this burning through 350 M$? A lot of enthusiasm, but perhaps making a similar mistake as with INTEL 2.0, where is the market for your capacity?

Oh well, it keeps PG off the street and brings in some bucks for his chimney to burn at home, and perhaps, perhaps he has a direct line to upstairs (devine) information......


PS when the Street and small investors give EM 80 B$ to play, PG must think 350 M$ is noise, I should be able to find some suckers....

 

[Fred Chen]

I recently talked at an event with the former, now retired, ASML CEO about this xLight initiative. My impression is that ASML does not feel threathened by this FEL stuff at all. ASML also looked into FELs for many many years.

His as was my conclusion (already before) are the same: you need redundancy, so a second FEL for each xLight setup (that delivers EUV light to say 10 EUV steppers), in case the first FEL has major down time. This is a very expensive redundancy!!

And presently, ASML ships every EUV machine with a (soon) 800-1000 Watt EUV source. They ship about 60-100 EUV machines EVERY YEAR. So, they bring some 60-100 kWatt EUV source power on the Fab market EVERY year.

A couple of 10 kWatt FELS from xLight is not going to move the needle very much.....and who is going to integrate them with the scanner? Is xLight going to build EUV-scanners/steppers as well? ASML will probably not spend too much time with xLight on adapting their tools for xLight FEL EUV sources would be my guess.

What would be the extent of ASML's mentioned collaboration with xLight, I wonder.

 

[user nl]

What would be the extent of ASML's mentioned collaboration with xLight, I wonder.

ASML will always "collaborate" just to know what these guys are doing and why it won't work. In case it would get interesting, they would buy them.......And getting the knowledgable people, and IP, in their own ASML-empire. Knowledgeable people are worth their weight in GOLD!