xLight Raises $40 Million in Race Against China for Chipmaking Laser
A Silicon Valley startup called xLight has secured $40 million in funding to develop a prototype for a new type of laser that has the potential to disrupt the global chip market and restore US dominance in an area where China is heavily investing.
The laser developed by xLight, which utilizes similar technologies to those found in large particle accelerators used at US national labs for advanced physics research, will be central to extreme ultraviolet (EUV) lithography machines.
These machines are primarily responsible for creating smaller and faster chips.
In a landscape where developments in areas such as AI hinge on the chip supply from companies like Nvidia and others, xLight aims to assist chip manufacturing plants, known as "fabs," in producing more silicon "wafers" that house advanced chips, more efficiently and at a lower cost.
The development of EUV machines has taken the chip industry decades, with Europe’s ASML, which is collaborating with xLight on its prototype, being the sole supplier globally.
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The US government has made concerted efforts across various presidential administrations to prevent the export of EUV machines to China, with one official labeling it the 'single most important export control' for the US and Europe.
In response, China has invested heavily in the sector, with a close manufacturing ally of its national champion, Huawei Technologies, announcing breakthroughs in producing its own EUV laser and over a dozen research papers emerging at international conferences pursuing the same technological route as xLight.
A US-based company named Cymer developed the initial EUV laser technology and was acquired by ASML for $2.5 billion more than ten years ago, significantly contributing to ASML's strong market position.
Most of the components for xLight's prototype will be sourced from U.S. national labs as the company strives to establish a supply chain within the U.S. and allied nations.