According to BlockTempo on June 25, the U.S. Department of Commerce signed a letter of intent in December 2025, committing up to $150 million to xLight through the CHIPS Act and taking direct equity. This is the first equity deal of the newly established CHIPS R&D office under the Trump administration. Former Intel CEO Pat Gelsinger serves as executive chairman of the company.
U.S. Commerce Department Signs Letter of Intent, Acquires Equity in xLight
U.S. Commerce Secretary said in the letter of intent statement: "For too long, America has ceded the frontier of advanced lithography to others. Under President Trump, those days are over." Including federal funding, xLight has raised a total of approximately $200 million to date, plus up to $4.2 billion in non-binding project financing commitments for future factory construction.
Playground Global, the venture capital firm associated with Gelsinger, led xLight's $40 million Series B round in July 2025. The current $350 million fundraising plan also invited ASML, TSMC, Intel, and Micron to co-invest, but the participation status of each party has not been disclosed. Gelsinger, who spent decades at Intel, was one of the key drivers behind the passage of the 2022 CHIPS Act.
ASML CEO Publicly States Collaboration with xLight on Technology Verification
ASML's current EUV light source uses "laser-induced plasma" technology, hitting molten tin droplets tens of thousands of times per second with a high-power laser to emit 13.5nm EUV light. The latest generation machine costs between $300 million and $400 million. xLight adopts a "free electron laser" approach: using a small particle accelerator to speed up electrons to nearly the speed of light, then passing high-speed electrons through alternating magnets. The electrons oscillate in the magnetic field to emit EUV light, without hitting tin droplets.
xLight claims this approach can achieve a 2nm wavelength (compared to ASML's current 13.5nm), and will significantly reduce manufacturing costs for advanced AI chips. xLight positions itself as a light source supplier integrating into ASML machines, rather than directly competing in the system business. ASML CEO Fouquet has publicly stated, "ASML is collaborating with xLight on technology verification." xLight is building its first prototype factory in the Albany NanoTech complex, aiming to have its first operational light source online by 2028, which is still over two years away.
Semiconductor Expert Fred Chen: No Public Solution for Material Compatibility Issues of High-Power EUV with Pellicle and Photoresist
Fred Chen of semiconductor forum SemiWiki directly pointed out the core contradiction: "Higher EUV power is definitely incompatible with pellicle, and it will likely become incompatible with photoresist as well." Pellicle is an ultra-thin protective film attached to the photomask to prevent dust from harming wafer yield; photoresist is a photosensitive coating applied to the wafer to transfer circuit patterns. When power is too high, the pellicle will be burned through, and photoresist chemical reactions may also go out of control. No public solutions currently exist for either issue.
xLight's business model is built on the premise that a 2nm wavelength can achieve high power while maintaining material compatibility. This premise is currently still a claim rather than a verified fact.
Frequently Asked Questions
What is the core difference between xLight's free electron laser and ASML's current technology?
ASML uses "laser-induced plasma" technology, which hits molten tin droplets with a laser to emit 13.5nm EUV light, with the latest generation machine costing $300 million to $400 million. xLight uses a "free electron laser," passing high-speed electrons through alternating magnets to emit EUV light, claiming it can achieve a 2nm wavelength. It positions itself as a light source supplier integrating into ASML machines, rather than directly competing in the system business.
What is the structure of the U.S. government's investment in xLight?
The U.S. Department of Commerce signed a letter of intent in December 2025, committing up to $150 million to xLight through the CHIPS Act and taking direct equity. This is the first equity transaction of the Trump administration's CHIPS R&D office. Together with previous funding, xLight has raised a total of approximately $200 million, plus up to $4.2 billion in non-binding project financing commitments.
What identified materials science challenges does xLight's technology face?
SemiWiki's Fred Chen pointed out that there is a fundamental contradiction in material compatibility between high-power EUV light and pellicle and photoresist, with no public solution currently available. The core premise of xLight's business model—that a 2nm wavelength can achieve high power while maintaining material compatibility—remains a claim rather than a verified fact. The prototype factory is expected to be online by 2028.
