xLight has entered a Letter of Intent with the U.S. Department of Commerce for $150 million in proposed federal incentives intended to accelerate development of next-generation semiconductor lithography. The company announced the agreement on December 1, marking the first award issued by the Trump Administration’s CHIPS Research and Development Office. The move signals that advancing domestic lithography capabilities is a central priority in the administration’s broader effort to strengthen American semiconductor manufacturing.
Headquartered in Palo Alto and founded in 2021, xLight is developing what it describes as the world’s most powerful free-electron lasers, which are expected to play a foundational role in future chipmaking technology. The company plans to build its first free-electron laser system at the Albany Nanotech Complex, where advanced lithography infrastructure will support research, development, and pilot-scale commercialization. The next phase of work will involve partnering with Commerce officials and collaborators across the Albany facility, with additional announcements expected in the coming months.
The company emphasized that its technology is engineered to deliver an energy-efficient extreme ultraviolet laser with performance improvements that could dramatically expand the limits of semiconductor fabrication. xLight also highlighted its collaborations across the Department of Energy national laboratory network, including Argonne, Fermilab, Jefferson Lab, Los Alamos, Oak Ridge, SLAC, Old Dominion University, and Cornell University.
With federal participation and growing investor support, xLight aims to accelerate the timeline for bringing a domestic, high-performance light source to market for state-of-the-art lithography. The company views the CHIPS and Science Act incentives as a catalyst for securing U.S. leadership in advanced semiconductor production.
KEY QUOTES:
“The future of semiconductor manufacturing hinges on lithography, and we are grateful for the support of the Trump Administration, Secretary Lutnick, and Deputy Secretary Dabbar, and their vision to drive innovation and restore American leadership in advanced semiconductor manufacturing. With the support from Commerce, our investors, and development partners, xLight is building its first free-electron laser system at the Albany Nanotech Complex, where the world’s best lithography capabilities will enable the research and development that will define the future of chip manufacturing.”
Nicholas Kelez, CEO and CTO, xLight
“Reviving Moore’s Law and restoring American leadership in light is a once-in-a-generation opportunity and with the support of the federal government, xLight will turn opportunity into reality. Building an energy-efficient EUV laser with tenfold improvements over today’s technology will drive the next era of Moore’s Law, accelerating fab productivity, while developing a critical domestic capability.”
Pat Gelsinger, Executive Chairman of the Board, xLight and General Partner, Playground Global
“For far too long, America ceded the frontier of advanced lithography to others. Under President Trump, those days are over. With this partnership, we are backing a technology that can fundamentally rewrite the limits of chipmaking. Best of all, we’re doing it here at home. xLight’s FEL platform represents the kind of breakthrough innovation that restores American leadership, secures our supply chains, and guarantees that the next generation of semiconductors is born in the United States. This is the CHIPS program at its best.”
Howard Lutnick, Secretary of Commerce
“Department of Commerce and other federal partner participation will help to validate and rapidly accelerate the commercialization of this novel domestic light source for current and future state-of-the-art semiconductor lithography.”
Paul Dabbar, Deputy Secretary of Commerce
