The former CEO of Intel, Pat Gelsinger, who now leads xLight, a chip manufacturing startup, has secured a $350 million funding round with the backing of the U.S. government.

According to Perceive Beating monitoring, the US government-backed chip manufacturing startup xLight is in negotiations to raise $350 million. Investment firms Boardman Bay Capital Management and Bain Capital are expected to lead this round of funding. The US government has invested $150 million in xLight through the Chip and Science Act, potentially becoming a major shareholder. xLight's total funding has now reached approximately $200 million.

Former Intel CEO Pat Gelsinger serves as xLight's Chairman. Gelsinger's venture capital firm, Playground Global, invested in xLight in 2025. xLight plans to lobby ASML, TSMC, Intel, and Micron to participate in this funding round.

xLight is focused on developing an alternative light source for Extreme Ultraviolet (EUV) lithography technology to reduce the manufacturing time and cost of advanced server chips. ASML CEO Christophe Fouquet revealed that ASML is collaborating with xLight on a technology demonstration but noted that this is still a long road ahead. xLight plans to establish its first prototype site in Albany, New York, aiming to complete the first usable light source by 2028.

The company has signed a $4.2 billion non-binding project financing agreement with lending institutions, intended for the construction of the first set of 7 facilities. Another startup, Substrate, is also developing X-ray lithography technology, directly competing with ASML.

Since early 2025, the US government has made at least 12 equity investments in private companies, focusing on shifting critical elements of the AI server chip supply chain to the US. This includes two semiconductor investments between Intel and xLight.