A Semiconductor Revolution: Administration Backs Laser Startup XLight with $150 Million CHIPS Award
The race for global supremacy in advanced microchips just saw a massive injection of American financial power. The U.S. Department of Commerce announced a plan to provide up to $150 million in federal incentives to XLight, a startup co-founded and chaired by former Intel CEO Pat Gelsinger, for its groundbreaking work in next-generation chip manufacturing technology.
This is more than just a capital investment, it’s a strategic move in a high-stakes geopolitical chess match. The funding is a proposed federal incentive under the landmark CHIPS and Science Act. More notably, it marks the very first award to be announced by the administration’s CHIPS Research and Development Office (CRDO), signaling a clear priority to secure the domestic supply chain for the most advanced semiconductors.
The Technology That Could Change Everything
So, what exactly is XLight doing that warrants this kind of top-level government commitment? The company is developing the world’s most powerful Free Electron Lasers (FELs) to create Extreme Ultraviolet (EUV) light sources. This light is the essential ingredient for the photolithography process that etches the microscopic circuits onto silicon wafers.
In simple terms, XLight is building a next-generation “light source” to replace the current industry standard. Their technology promises a performance improvement up to tenfold over today’s systems, which experts believe is critical to “reviving Moore’s Law” and continuing the trend of making chips smaller and faster. The current technology, called Laser Produced Plasma (LPP), is running up against its physical limits, creating a bottleneck in advanced manufacturing. XLight aims to shatter that bottleneck.
A Bet on American Leadership
The investment reflects a growing consensus in Washington that America cannot afford to cede the manufacturing frontier of advanced technology. Commerce Secretary Howard Lutnick spoke plainly about the deal, stating that the partnership backs a technology that can “fundamentally rewrite the limits of chipmaking” and guarantees that the next generation of semiconductors is born in the United States.
Pat Gelsinger, XLight’s Executive Chairman, echoed that sentiment, calling the goal a “once-in-a-generation opportunity.” For years, the U.S. had fallen behind in advanced lithography, but this investment, confirmed through a Letter of Intent (LOI) with the Department of Commerce, is intended to reverse that trend and secure a critical domestic capability. The company’s work also leverages proven technologies pioneered in the U.S. National Lab ecosystem, adding to the “made in America” narrative.
What Happens Next?
The $150 million is currently a proposed incentive via the LOI, which is a significant step toward a final funding agreement. XLight is already moving forward with its plans to build its first Free Electron Laser system at the Albany Nanotech Complex. This location will serve as a hub for research and development, bringing together the resources of the Commerce Department, private investors, and development partners. The company has a prototype scheduled to be operational and printing wafers in 2028, setting the stage for a dramatic shift in how the world’s most powerful chips are made.