(L-R): Bruce Dunham, VP of Accelerator Systems; Ben Purser, VP for Global Policy and Public Sector Partnerships; Chris Anderson, VP of Photon Systems; Nicholas Kelez, CEO and CTO; Kevin Heidrich, Chief Commercial Officer; and Andrew Burrill, VP of Engineering and Industrialisation - Credits: xLight / Stephanie Cowan- xLight, a Silicon Valley startup, secures $40 million to develop a new laser tech for the chip industry.
- The tech could help the US regain leadership amid China’s investments.
- xLight’s laser will be used in extreme ultraviolet (EUV) lithography machines.
- The goal is to boost chip production and advance fields like AI.
- Operational prototype expected by 2028.
xLight, a Silicon Valley startup, has secured $40 million to develop a new class of laser that could disrupt the global chip industry and help the US regain its leadership, amid China’s aggressive investments in the field.
xLight’s laser, leveraging particle accelerator technology used in US national labs, will be a core component of extreme ultraviolet (EUV) lithography machines, which are crucial for producing smaller, faster chips.
xLight aims to boost chip production by enabling factories to manufacture advanced silicon wafers more quickly and cost-effectively, which is crucial for advancing fields like AI that rely on chip supply from companies like Nvidia.
JOIN US TO STAY UPDATED ON YOUR FAVORITE MESSENGER APP!
“This is the most expensive tool in the fab. It’s what drives the cost of the wafer more than any other tool in the fab, and it’s what drives capacity more than any other tool in the fab,” said Nicholas Kelez, CEO of xLight, at the company’s headquarters in Palo Alto.
xLight has not disclosed its valuation, but the company expects to have an operational prototype of its technology by 2028.
The development of EUV machines has taken the chip industry decades, with Europe’s ASML being the sole supplier. While ASML and xLight don’t have a business partnership, ASML’s technical leaders have shared the requirements a laser must meet to be considered for use in their machines.
The US government has consistently worked to prevent the export of EUV machines to China, across multiple administrations, with one official describing it as the “single most important export control” held by the US and Europe.
Aggressively, China has invested heavily in the field, with a key manufacturing partner of Huawei Technologies claiming breakthroughs in developing its own EUV laser. Additionally, over a dozen research papers have been presented at international conferences, pursuing a similar technological path as xLight’s innovations domestically.
A US-based firm, Cymer, pioneered the first EUV laser technology but was acquired by ASML over a decade ago for $2.5 billion, contributing to ASML’s market dominance. Pat Gelsinger, former Intel CEO and xLight’s executive board chairman, lamented the deal, saying, “There was a terrible mistake made giving Cymer the ability to become a European-owned and controlled company.”
xLight will source many prototype components from US national labs as it builds a supply chain in the US and allied countries. “We can build that here, or it can be built elsewhere. China is investing heavily in this space. There’s an extraordinary backstory here that says, ‘Let’s get this one right,'” said Gelsinger.
The funding round was led by Playground Global and Boardman Bay Capital Management, with participation from Morpheus Ventures, Marvel Capital, and IAG Capital Partners.
ⓘ As part of our ongoing support for startups and SMEs, LAFFAZ Media publishes feature and resource articles that may include references and links to external websites. These inclusions are selected at our editorial discretion to provide valuable information to our readers. LAFFAZ Media does not control, endorse, or assume responsibility for the content or practices of external websites. For more details, please refer to our Terms and Conditions.
