xLight secured a $150 million Letter of Intent from the U.S. Department of Commerce, marking the first CHIPS award issued under the Trump Administration’s CHIPS Research and Development Office. The deal positions the Palo Alto company to accelerate development of a next-generation free-electron laser (FEL) platform aimed at powering future semiconductor lithography systems. The LOI reinforces the administration’s push to rebuild domestic capabilities in advanced chip manufacturing and reduce reliance on foreign light-source technologies.
The company plans to build its first FEL system at New York’s Albany Nanotech Complex, tapping its existing ecosystem of leading-edge lithography tools and research partners. xLight says its technology targets an energy-efficient EUV light source with a tenfold performance improvement over today’s systems—an advance that could significantly increase fab throughput and extend Moore’s Law. The company will continue collaborating across the Department of Energy’s national labs as part of its development plan.
Commerce Secretary Howard Lutnick said the award reflects a strategic shift to reclaim American leadership in semiconductor lithography—an area long dominated by foreign suppliers. With the LOI in place, xLight will move into formal negotiations with Commerce and partners at Albany Nanotech, with additional commercial and technical milestones expected in the coming months.
• $150 million CHIPS Act LOI marks the first CHIPS R&D Office award under the Trump Administration.
• xLight to build its first free-electron laser system at the Albany Nanotech Complex.
• Company targets a next-generation EUV light source with a 10× improvement over current technology.
• Development supported by collaboration with DOE national labs including Argonne, Fermilab, Jefferson Lab, Los Alamos, Oak Ridge, SLAC, and university partners.
• LOI supports U.S. efforts to rebuild domestic semiconductor lithography capability.
“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,” said Nicholas Kelez, CEO and CTO of xLight.
🌐 Analysis: This LOI signals a renewed U.S. push to compete directly in lithography light-source technology, an area where the global supply chain remains heavily concentrated. It also reflects a broader CHIPS-era interest in diversifying lithography innovation beyond EUV’s traditional supply base. For xLight, the announcement follows growing federal attention to FEL-based alternatives, while competitors continue to scale conventional EUV and explore High-NA EUV pathways.
Pat Gelsinger, serving as xLight’s Executive Chairman, is helping steer the company’s strategy to commercialize a next-generation free-electron laser light source aimed at advancing U.S. semiconductor lithography, guiding its technology roadmap as the nation works to rebuild domestic capability in this critical part of the chipmaking supply chain. Gelsinger previously served as CEO of Intel, stepping down earlier this year to take on new roles including Executive Chairman of xLight and General Partner at Playground Global.
