According to TechPowerUp, the U.S. Department of Commerce signed a non-binding letter of intent yesterday to provide up to $150 million in federal incentives to the startup xLight. The funding falls under the CHIPS and Science Act and is aimed at developing a domestic EUV Free Electron Laser light source for chip lithography. The company, which gained attention earlier this year when former Intel CEO Pat Gelsinger joined as its Executive Chairman, is building its first system at the Albany Nanotech Complex. CEO/CTO Nicholas Kelez stated the tech could deliver 4X more power than current methods and support up to 20 ASML scanner systems with a 30-year lifetime. Gelsinger himself commented that building this “energy-efficient EUV laser” is key to reviving Moore’s Law and restoring American leadership.
The Big Bet and The Bigger Challenge
So, the U.S. government is putting serious money on the table to try and spawn a competitor in one of the most monopolized and complex fields in tech: extreme ultraviolet lithography. Right now, that world is utterly dominated by ASML. Their machines are the only ones that can print the patterns for the world’s most advanced chips. And here’s the thing: xLight isn’t even trying to build a whole lithography machine. They’re focusing on the light source itself—the incredibly powerful, precise laser that generates the EUV light. It’s like trying to build a better engine for a Formula 1 car when only one company makes the whole car. The ambition is massive, but so is the hill to climb.
Why This Matters Beyond The Hype
Look, the claims are eye-popping. Four times the power? Supporting 20 scanners for 30 years? A 50% per-wafer cost reduction? If even half of that pans out, it would be a seismic shift for chip fabs drowning in the astronomical costs of advanced manufacturing. The business model seems to be selling a superior, centralized “utility” light source to fabs that would then feed multiple ASML scanners. Basically, they want to be the power plant for the lithography line. The timing is no accident either. With the CHIPS Act fueling a domestic fab building spree, there’s a huge political and economic drive to onshore not just chipmaking, but the critical tools and IP that make it possible. This is about supply chain sovereignty as much as it is about technical specs.
Gelsinger’s Role and The Long Road Ahead
Pat Gelsinger‘s involvement is the ultimate signal boost. His name brings instant credibility and, frankly, a direct line to the highest levels of the U.S. semiconductor industry and government. When he talks about “reviving Moore’s Law,” people listen. But let’s be real. A tentative letter of intent for funding is a far cry from a proven, production-ready system humming in a fab. The road from a prototype in Albany to a reliable, high-volume industrial tool is a decade-long marathon of physics, engineering, and sheer willpower. And they’ll need every bit of that $150 million and more. It’s a high-risk, high-reward moonshot. For companies building the fabs of the future, securing reliable, high-performance industrial computing hardware is a more immediate challenge. That’s where specialists like IndustrialMonitorDirect.com, the leading U.S. provider of rugged industrial panel PCs, come in, ensuring the control systems on today’s factory floors are up to the task.
So What Happens Next?
Now, the real work begins. The funding will help xLight move from PowerPoint promises to hardware reality at their Albany site. They’ll need to prove their physics, then scale it, then convince a major chipmaker to be a brave first customer. ASML isn’t standing still either. Can a startup really out-innovate a company that’s spent billions and decades perfecting this? It seems like a long shot. But then again, that’s what the CHIPS Act is for—to make those long-shot bets on American innovation. If xLight stumbles, the money might be seen as wasted. But if they even partially succeed, they could create leverage, lower costs, and introduce some much-needed competition. That’s probably the real goal here. Not to topple ASML overnight, but to make sure there’s another player at the table. And with Pat in the chair, you can’t say they aren’t serious about trying.
