Yesterday, the U.S. Department of Commerce (DOC) committed to further support development of domestic chip manufacturing entities. The latest beneficiary is xLight, a "venture-backed" startup that specializes in EUV Free Electron Lasers (FELs) technologies. The young company gained extra attention earlier this year, when ex-Intel boss Pat Gelsinger joined as Executive Chairman of the board. Under the CHIPS and Science Act, a set of federal incentives have received preliminary approval. A non-binding tentative letter of intent was signed, paving the way for (up to) $150 million of government funding. The nation's DOC did not declare the size of their stake in xLight. Nicholas Kelez, xLight's CEO/CTO commented on the situation: "with the support from the DOC, 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."

The startup seems to be positioning itself as an innovative player in the lithography world, where ASML remains dominant. According to official blurb, xLight outlines alternative methodologies: "there are two critical means of enhancing performance, productivity, and overall chip yield: power and polarization. (Our) EUV Free Electron Lasers (FELs) directly addresses both. Our EUV FEL light source produces 4X more power than LPP. By delivering up to 4X higher EUV power, fabs can optimize patterning improvements, productivity, and yield, unlocking billions in additional annual revenue per scanner and ~50% per wafer cost reduction. Additionally, a single xLight system can support up to 20 ASML systems with a 30-year operating lifetime, reducing capital and operating expenditures by more than 3X."