U.S. Government to Take Major Stake in xLight Amid Push for Domestic Chip Innovation

The Trump administration has agreed to inject up to $150 million into xLight, a semiconductor startup chaired by former Intel CEO Pat GelsingerDealroom has a profile for this one. Try Dealroom →, according to reports from The Wall Street Journal and Reuters . The funding, which comes from the 2022 Chips and Science Act, would give the U.S. government an equity stake likely making it xLight’s largest shareholder.

The investment marks the administration’s first Chips Act award during President Trump’s second term and signals a renewed commitment to building advanced semiconductor capabilities domestically. The Commerce Department stated that xLight’s research focuses on improving a key element of extreme ultraviolet (EUV) lithography—the laser systems that etch nanometer-scale patterns onto silicon wafers.

The Dutch company ASML remains the sole global supplier of EUV machines, which cost hundreds of millions of dollars each. xLight aims to develop a more powerful and efficient laser source that could be integrated into ASML’s systems. The company’s approach involves building large-scale “free electron lasers” powered by particle accelerators, designed to produce highly precise light at wavelengths as short as two nanometers.

If successful, xLight’s technology could help extend the trajectory of Moore’s Law by enabling the creation of chips with smaller, more densely packed transistors. The company targets its first production wafers by 2028.

Commerce Secretary Howard LutnickDealroom has a profile for this one. Try Dealroom → described the partnership as a step toward “rewriting the limits of chipmaking.” Critics, however, have raised concerns about the government’s strategy of taking ownership stakes in private firms, characterizing it as a form of state-directed industrial policy.

For Gelsinger, who left Intel following disappointing financial results and a stalled manufacturing expansion, xLight represents both a professional and personal continuation of his efforts to advance semiconductor technology in the United States.

Sources:
The Wall Street Journal
Reuters
TechCrunch

J.V.