The U.S. Department of Commerce plans to inject up to $150 million into xLight, a startup developing next-generation chip-making lasers. The investment, made through the CHIPS Research and Development Office, comes via a preliminary letter of intent and marks the office’s first major commitment under the revamped $7.4 billion semiconductor research initiative.
xLight aims to build free-electron lasers derived from particle accelerator technology, promising significantly lower power consumption than current systems used in extreme ultraviolet lithography tools. These lasers are among the most complex components in advanced chip manufacturing equipment.
The company is working with U.S. national laboratories to develop a prototype that could integrate with machines made by ASML or potential future rivals. The move underscores Washington’s push to reduce reliance on a single foreign supplier for critical chipmaking tools and strengthen domestic semiconductor capabilities.