The US government has invested in xLight, a chip manufacturing startup led by the former Intel CEO, which plans to raise $350 million.

According to Beating, xLight, a US government-backed chip manufacturing startup, is in talks to raise $350 million. Investment firms Boardman Bay Capital Management and Bain Capital are expected to lead the round. The US government invested $150 million in xLight through the Chip and Science Act, potentially becoming one of its major shareholders. xLight's total funding has reached approximately $200 million. Former Intel CEO Pat Gelsinger serves as xLight's executive chairman. Gelsinger's venture capital firm, Playground Global, invested in xLight in 2025. xLight plans to lobby ASML, TSMC, Intel, and Micron Technology to participate in this funding round. xLight focuses on developing alternative light sources for extreme ultraviolet (EUV) lithography to reduce manufacturing time and costs for advanced server chips. ASML CEO Christophe Fouquet revealed that ASML is collaborating with xLight on technology demonstrations, but stated that it is still a long road. xLight plans to build its first prototype site in Albany, New York, aiming to have its first usable light source by 2028. The company has signed a $4.2 billion non-binding project financing agreement with lenders, which will be used to build its first seven facilities. Another startup, Substrate, is also developing X-ray lithography technology, directly competing with ASML. Since early 2025, the U.S. government has made at least 12 equity investments in private companies, focusing on shifting key parts of the AI server chip supply chain to the United States. This includes two semiconductor investments in Intel and xLight.