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US Government plans $150M investment in xLight semiconductor startup

Tuesday, December 2, 2025 at 10:33 AM

The US government has reportedly agreed to invest up to $150 million in xLight, a semiconductor technology startup. The company is associated with Intel's CEO, Pat Gelsinger.

Context

The U.S. Department of Commerce has announced a planned investment of up to $150 million in xLight, a semiconductor technology startup. The deal, structured as a non-binding letter of intent for federal incentives under the CHIPS and Science Act, was announced in early December 2025. This marks the first award from the CHIPS Research and Development Office under the current administration, signaling a strategic focus on shoring up the domestic semiconductor equipment supply chain. The investment is significant as xLight aims to develop a domestic alternative to a critical chokepoint in advanced chip manufacturing. The startup, whose executive chairman is former Intel CEO Pat Gelsinger, is developing a free-electron laser for extreme ultraviolet (EUV) lithography. This technology is essential for producing the most advanced chips and is currently monopolized by the Dutch firm ASML. xLight aims to produce its first test wafers by 2028, potentially disrupting a key segment of the global semiconductor ecosystem.

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