A startup challenging the dominance of ASML and TSMC? Armed with particle accelerator-powered lithography, Substrate looks to revive America’s advanced semiconductor manufacturing ambitions
An American startup, Substrate, has entered the semiconductor race with technology it claims could rival Dutch giant ASML’s extreme ultraviolet (EUV) lithography machines and challenge TSMC’s dominance in advanced chip manufacturing.
According to a Bloomberg report, the San Francisco–based company has developed a lithography system using a particle accelerator to create shorter-wavelength X-rays, producing beams that it says are finer and more precise than ASML’s light-based systems.
According to its founder and CEO James Proud, Substrate’s prototype has already demonstrated chip production at the 2-nanometre process in tests conducted at US national laboratories. The company claims its system could reduce the cost of manufacturing a leading-edge wafer from around $100,000 to just $10,000 by the end of the decade.
Substrate reportedly plans to go beyond selling equipment; it aims to build its own network of US-based fabrication plants, or fabs, using this new lithography technology.
Proud said the ultimate goal is to create a domestic chipmaking business capable of competing with TSMC in high-performance and AI chip production, with large-scale operations targeted by 2028.
The company has attracted strong investor interest, securing $100 million in seed funding at a valuation exceeding $1 billion. Notable backers include Peter Thiel’s Founders Fund, General Catalyst, and Valor Equity Partners. Proud has also reportedly held meetings with US Commerce Secretary Howard Lutnick and other federal agencies as the startup aligns with Washington’s broader push for semiconductor self-reliance.
However, analysts caution that replicating ASML’s precision and TSMC’s scale could take years. Building such technology typically demands decades of refinement and ecosystem support, something Substrate currently lacks.
