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