Silicon Valley startup xLight has raised $40 million in a Series B funding round. The company is developing powerful lasers for advanced semiconductor manufacturing. xLight aims to address key industry challenges such as cost, capability, and production capacity.
The funding round was led by Playground Global, an early-stage venture capital firm. Other investors included Boardman Bay Capital Management, Morpheus Ventures, and IAG Capital Partners. The funds will be used to finalize the design and begin construction of xLight’s full-scale prototype.
xLight is building extreme-ultraviolet (EUV) free electron lasers (FEL). These lasers are crucial for creating smaller, faster chips.
Funding secured for advanced chip lasers
The company has partnered with Europe’s ASML, the world’s only supplier of EUV machines, to develop its prototype. Nicholas Kelez, CEO of xLight, said, “This round equips the company with the capital necessary to finalize the design and begin construction of our full-scale prototype.”
Pat Gelsinger, Executive Chairman of xLight and General Partner at Playground Global, commented, “xLight represents a unique opportunity to restore American leadership in semiconductor technology.”
The U.S. government has restricted the export of EUV machines to China. In response, China has invested heavily in developing its own EUV technologies.
Huawei Technologies and numerous research publications have reported significant progress. xLight will source many of its prototype components from U.S. national labs to build a domestic supply chain. The company has established key partnerships with leading research facilities, including Cornell Laboratory for Accelerator-based ScienceS and Education (CLASSE), Los Alamos National Laboratory (LANL), and Fermi National Accelerator Laboratory.
The quest for EUV supremacy highlights the growing technological rivalry between the United States and China. Advanced chip technology has become central to national security and the future of AI, telecommunications, and the broader data-driven economy.