Injecting $150 million, the Trump administration backs startup xLight to accelerate development of next-generation chip laser technology.
The Trump administration will invest up to $150 million in chip laser startup xLight, aiming to accelerate development of free-electron lasers critical for faster computing chips, the US Department of Commerce announced on Monday. The government will take a stake in the company through a non-binding preliminary letter of intent signed by the CHIPS Research and Development Office, marking its first investment since inheriting a $7.4 billion semiconductor research institute from the Biden-era program.
xLight is developing lasers for extreme ultraviolet lithography machines, the most advanced tools for printing chip patterns onto silicon wafers. Currently, Dutch company ASML is the only producer of such machines, though startups like Substrate are exploring alternatives. The most challenging component of these machines is the laser itself, which consumes significant amounts of energy. xLight aims to use technology derived from particle accelerators to build a prototype laser that uses far less electricity while being compatible with ASML and other lithography machines.
The startup is collaborating with US national laboratories on the project and has strengthened its leadership team by bringing on former Intel CEO Pat Gelsinger as executive chairman in March. Secretary of Commerce Howard Lutnick emphasized the strategic importance of the investment, stating, “For far too long, America ceded the frontier of advanced lithography to others. Under President Trump, those days are over.”
The government’s backing of xLight reflects a broader push to regain technological leadership in semiconductor manufacturing and reduce reliance on foreign suppliers for critical chip-making infrastructure, as US policymakers seek to bolster domestic capabilities in advanced chip production.
