xLight Announces $150 Million Letter of Intent with U.S. Department of Commerce to Advance Next-Generation Lithography and Strengthen Domestic Semiconductor Manufacturing
xLight, a pioneering American technology company developing the world’s most powerful free-electron laser systems for semiconductor manufacturing, announced today that it has signed a Letter of Intent (LOI) with the U.S. Department of Commerce for $150 million in proposed federal incentives under the CHIPS and Science Act. This proposed award represents a historic milestone: it is the first award issued by the Trump Administration’s CHIPS Research and Development Office (CRDO) and reinforces that advanced lithography innovation is a national priority in the effort to rebuild America’s semiconductor leadership.
The LOI marks a significant step forward for both xLight and the United States semiconductor ecosystem. Free-electron laser (FEL) technology is widely considered the most promising path to enabling the next era of extreme ultraviolet (EUV) lithography—an essential capability for producing the smallest, most powerful, and energy-efficient chips that will drive future technology advancements in artificial intelligence, national defense, cloud computing, communications, and consumer electronics.
Leadership Perspectives on a National Breakthrough
“The future of semiconductor manufacturing hinges on lithography, and we are deeply grateful for the support of the Trump Administration, Secretary Lutnick, and Deputy Secretary Dabbar, and for their shared vision to accelerate innovation and restore American leadership in advanced semiconductor manufacturing,” said Nicholas Kelez, CEO and CTO of xLight. “With the support of Commerce, our investors, and our technology partners, xLight is now building its first free-electron laser system at the Albany Nanotech Complex. This ecosystem—home to the world’s most advanced lithography capabilities—will enable the research, development, and engineering breakthroughs that define the future of chip manufacturing.”
Kelez emphasized that next-generation lithography is fundamentally about enabling progress across the entire semiconductor value chain: “Every leap in computing power begins in a lithography tool. By developing a fundamentally new class of energy-efficient EUV light sources with a tenfold improvement over existing systems, we are creating a platform that will accelerate fab productivity while dramatically reducing cost and energy consumption. This is how we revive Moore’s Law—not just incrementally, but exponentially.”
Pat Gelsinger, Executive Chairman of the Board of xLight and General Partner at Playground Global, underscored the enormous potential ahead:
“Reviving Moore’s Law and restoring American leadership in light is a once-in-a-generation opportunity. With the support of the federal government, xLight will turn that opportunity into reality. Building an advanced EUV laser that outperforms today’s technology by an order of magnitude is key to unlocking the next era of semiconductor innovation. It strengthens our national supply chain, enhances security, and positions the United States to lead the global race for microelectronics.”
A National Priority to Restore Semiconductor Independence
The CHIPS and Science Act was designed to bring semiconductor manufacturing and high-value R&D back to the United States, reversing decades of offshoring that left domestic industry vulnerable to global supply chain disruptions. Today’s announcement is a major indication of federal commitment to that mission.
“For far too long, America ceded the frontier of advanced lithography to others,” said Secretary of Commerce Howard Lutnick. “Under President Trump, those days are over. With this partnership, we are backing a technology that can fundamentally rewrite the limits of chipmaking—and 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 ensures that the next generation of semiconductors is born in the United States. This is the CHIPS program at its best.”
Deputy Secretary Paul Dabbar added that federal partnership will accelerate commercialization and deployment:
“Department of Commerce and other federal partner participation will help validate and rapidly advance the scaling of this novel domestic light source for state-of-the-art semiconductor lithography. We’re not just supporting research—we’re enabling real infrastructure that can be used in fabs and in production environments.”
Building the Future at the Albany Nanotech Complex
xLight is now collaborating closely with both the Department of Commerce and its partners across the Albany Nanotech Complex, one of the world’s most advanced semiconductor R&D sites. The location is uniquely equipped with cutting-edge cleanrooms, lithography tools, and a collaborative ecosystem that includes semiconductor manufacturers, research institutions, and academic partners.
The first FEL system being constructed there will serve as the foundation for a scalable approach to next-generation EUV lithography. The goal is to demonstrate a system capable of supporting leading-edge chip production and ultimately enabling high-volume manufacturing environments.
Additional program details, milestones, and timelines will be announced in the coming months as engineering and installation progress.
Partnership with the Department of Energy National Laboratories
In addition to its work at Albany Nanotech, xLight is actively collaborating with experts across the U.S. Department of Energy’s national lab system, leveraging decades of expertise in particle accelerators, advanced materials, superconducting technology, and high-precision laser science. Research partners include:
- Argonne National Laboratory
- Fermilab
- Jefferson Lab
- Los Alamos National Laboratory
- Oak Ridge National Laboratory
- SLAC National Accelerator Laboratory
These partnerships provide access to world-class talent and infrastructure, accelerating the development of powerful new FEL architectures capable of producing dramatically brighter and more energy-efficient EUV light.
A Turning Point for American Semiconductor Leadership
The United States invented modern semiconductor manufacturing and once led the world in lithography technology. Over time, however, investment shifted overseas, and critical capabilities consolidated outside national borders. Today’s announcement signals a coordinated effort to reverse that trajectory and secure a competitive technological edge in one of the world’s most strategically important industries.
The CHIPS Act represents one of the largest industrial investments in American history, and support for companies like xLight illustrates a policy commitment to innovation-driven economic development rather than dependence on foreign suppliers. It also reflects the urgent competitive environment shaped by increasing global demand for compute power and artificial intelligence.
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