Silicon Valley's xLight Secures Major Funding
Silicon Valley-based startup
xLight has announced the close of a $40 million funding round, positioning itself at the forefront of the global race to develop advanced lasers critical for the next generation of semiconductor manufacturing[3]. This significant investment comes at a time of heightened competition between the US and China over chipmaking technology.
The High Stakes of Extreme Ultraviolet Lithography
Advanced semiconductor manufacturing relies upon
extreme ultraviolet (EUV) lithography, which uses powerful laser systems to etch minuscule circuits onto silicon wafers. Current technology, relying on
Laser Produced Plasma (LPP), only achieves about 25% of the light output required by the latest fabrication processes and will not meet the light intensity needs of future chipmaking demands[1].
xLight’s Technological Vision
xLight is developing what it claims will be the world’s most powerful
Free Electron Lasers (FELs) to replace LPP technology in advanced lithography systems[1][3]. The company’s feature-complete prototype is set to become operational and begin wafer production by 2028[1]. xLight’s vision includes:
- Transforming current semiconductor manufacturing by delivering much higher EUV light output
- Unlocking new generations of chips with greater resolution and performance
- Reducing both capital and operational expenses in large chip fabrication plants
- Strengthening national security and the technology supply chain for the US semiconductor industry
Strategic Importance for the US and Global Markets
Securing leadership in EUV laser technology is seen as vital for both
economic prosperity and
national security. The reliance on existing LPP light sources has become a bottleneck, with only a few global suppliers able to meet the technological demands of top-tier chipmakers such as TSMC and Samsung. By advancing FEL technology, xLight aims to ensure that the US and its allies retain a competitive edge as China invests heavily in homegrown alternatives[3].
About xLight
Founded by seasoned technologists specializing in high-complexity systems and lasers, xLight is headquartered in Palo Alto, California. The leadership team brings decades of experience with free electron laser technology across research, industry, and defense[1]. For more information, visit the
xLight official website.
Industry Context and Future Prospects
The funding round for xLight is one of the largest for a US semiconductor hardware startup in 2025, reflecting continued investor confidence in the sector despite geopolitical tensions and global supply chain challenges[3]. The company’s success would represent a major technological leap, potentially accelerating the rollout of smaller, faster, and more energy-efficient chips for consumer electronics, AI, and critical infrastructure.
