Securing major CHIPS Act support worth 150 million dollar, XLight advances its semiconductor ambitions with fresh federal backing.
Silicon Valley startup XLight has signed a letter of intent with the United States Department of Commerce for 150 million dollars in proposed CHIPS and Science Act incentives to advance its free electron laser technology for next generation chipmaking. Under the preliminary agreement, the Commerce Department would also receive 150 million dollars in equity, making the agency a direct stakeholder in the fast growing semiconductor firm.
According to the National Institute of Standards and Technology, the funds would support construction, expansion and demonstration of a free electron laser prototype designed to serve as an alternative light source for extreme ultraviolet lithography. XLight plans to build its first system at the Albany NanoTech Complex operated by NY Creates, a flagship CHIPS Act research hub that opened the National Semiconductor Technology Center earlier this year.
CEO and CTO Nicholas Kelez said the facility’s lithography capabilities will accelerate research that shapes the future of chip manufacturing. XLight aims to deploy the prototype at the site in 2028 to demonstrate its potential on EUV lithography tools and to explore shorter wavelength approaches that could enable more advanced semiconductor devices.
The move adds XLight to a growing list of chip companies in which the United States government holds equity, following major investments in Intel earlier this year. XLight continues to work across Department of Energy national labs while expanding its funding base, including a 40 million dollar series B raise in July. The company also strengthened its leadership by adding former Intel chief executive Pat Gelsinger to its board as executive chairman in March.
