[U.S. Government Invests in Chip Manufacturing Startup xLight Led by Former Intel CEO, Plans to Raise $350 Million] According to monitoring by Beating, the U.S. government-supported chip manufacturing startup xLight is in talks to raise $350 million in funding. Investment firms Boardman Bay Capital Management and Bain Capital are expected to lead this funding round. The U.S. government has invested $150 million in xLight through the CHIPS and Science Act, potentially becoming one of its major shareholders. xLight's total funding has reached approximately $200 million. Former Intel CEO Pat Gelsinger serves as xLight's Executive Chairman. Gelsinger's venture capital firm, Playground Global, invested in xLight in 2025. xLight plans to lobby ASML, TSMC, Intel, and Micron Technology to participate in this funding round. The company is dedicated to developing alternative light sources 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 technology demonstrations but noted that it remains a long journey ahead. xLight plans to build its first prototype site in Albany, New York, aiming to complete its first usable light source by 2028. The company has signed a non-binding project financing agreement worth $4.2 billion with lending institutions, intended for the construction of its first seven facilities. Another startup, Substrate, is also developing X-ray-based lithography technology, directly competing with ASML. Since early 2025, the U.S. government has made at least 12 equity investments in private companies, focusing on relocating critical segments of the AI server chip supply chain to the U.S. This includes two semiconductor investments in Intel and xLight. [Original Link]