Source of this article and featured image is TechCrunch. Description and key fact are generated by Codevision AI system.
The U.S. government is injecting $150 million into xLight, a semiconductor startup, through the Chips and Science Act, making it the largest shareholder. This marks the third time the Trump administration has taken an equity stake in a private company, raising concerns about government influence in tech. Previous investments include stakes in Intel, Lithium Americas, and Trilogy Metals, highlighting a broader strategy to boost domestic manufacturing. Critics argue this approach blurs the line between industrial policy and state capitalism, while supporters claim it strengthens national security. The funding aims to advance xLight’s radical chip-making technology, potentially challenging ASML’s dominance in extreme ultraviolet lithography.
Key facts
- The U.S. government is acquiring a majority stake in xLight through a $150 million investment under the Chips and Science Act.
- This marks the third instance of the Trump administration taking equity stakes in private tech firms, following similar moves with Intel and Lithium Americas.
- xLight’s technology uses particle accelerator-powered lasers to create advanced chip manufacturing capabilities, targeting 2nm precision.
- The deal could disrupt ASML’s monopoly on extreme ultraviolet lithography, which currently dominates the semiconductor industry.
- Industry leaders like Pat Gelsinger and Nicholas Kelez are pushing the project, with government backing framed as a national security imperative.
TAGS:
#ASML competition #Chips and Science Act #equity stakes #government equity stakes #National Security #particle accelerator technology #semiconductor startups #Silicon Valley #Tech policy #U.S. government investment
