Trump Administration Invests in Next-Generation Lithography: Can xLight Transform Chip Manufacturing?

The Trump administration has approved up to $150 million in funding for startup xLight, supporting the development of next-generation semiconductor manufacturing technologies in the U.S. This move represents the latest effort to use government incentives to bolster strategically important domestic industries.

According to a Commerce Department press release, xLight aims to improve a critical component of Extreme Ultraviolet Lithography (EUV)—the laser—which etches microscopic circuit patterns onto silicon wafers with extreme precision. In return, the government will receive equity in the company, potentially becoming its largest shareholder.

Dutch company ASML is currently the sole global producer of EUV lithography machines, each costing hundreds of millions of dollars. xLight plans to integrate its advanced light source into ASML machines, pushing semiconductor manufacturing to new heights.

xLight’s executive chairman is former Intel CEO Pat Gelsinger, who left Intel last year after the company faced financial and manufacturing challenges. Gelsinger stated, “This is deeply personal for me. My work is not done.” He hopes xLight can “wake up Moore’s Law” and drive breakthroughs in the semiconductor industry.

The investment uses funds from the 2022 CHIPS and Science Act, targeting early-stage companies with promising technologies. Commerce Secretary Gina Raimondo highlighted that this partnership could support technology capable of fundamentally redefining chip manufacturing limits.

xLight plans to build free-electron lasers (FELs) powered by particle accelerators, measuring roughly 100m × 50m, installed as utility-scale facilities next to wafer fabs. The company aims to produce its first silicon wafers by 2028, improving wafer processing efficiency by 30% to 40%. CEO Nicholas Kalerz previously worked in quantum computing companies and government research labs.

If successful, xLight’s energy-efficient, high-precision lasers could enable semiconductor manufacturers to etch finer patterns on wafers, keeping Moore’s Law on track. This innovation may enhance EUV cost-efficiency and open the door to next-generation chip production.

The Trump administration’s support underscores its strategic focus on strengthening U.S. advanced semiconductor manufacturing, while giving domestic startups an opportunity to compete on the global stage.