New laser chips created by America could spark a major rivalry with China. The race for developing new technology is faster than ever, and those who couldn’t keep up with both nations, ultimately are trying to develop new tools in diversified areas. On the other hand, this race between America and China is about to go to another level with a Silicon Valley company selling particle accelerators – the thing that created Flash in D.C. comics. But this isn’t a massive collider buried underground — it’s the size of a chip.
The collider fits in the palm of your hand
Chips have become the battleground of modern innovation, and shrinking such high-powered tools down to nanoscale is a strategic breakthrough. Currently, Taiwan dominates chip manufacturing, accounting for over 60% of global production, with TSMC alone responsible for more than 90% of the world’s most advanced chips.
China, despite heavy investments, still relies on foreign equipment and lags behind in cutting-edge chip fabrication. Meanwhile, the U.S. has been working to regain control — investing over $50 billion through the CHIPS Act to bring semiconductor production back home. As lasers shrink to the size of chips and chip wars heat up, the line between science fiction and geopolitical strategy gets thinner by the day.
U.S. xLight to change semiconductors manufacturing
A U.S. startup is developing a new type of laser chips that could reshape how advanced semiconductors are manufactured — and challenge the dominance of Europe’s ASML in extreme ultraviolet (EUV) lithography.
xLight, based in Palo Alto, California, has raised $40 million in Series B funding to build a prototype free-electron laser (FEL) capable of emitting EUV light directly. Unlike current systems, which rely on laser-driven plasma sources, xLight’s FEL uses particle accelerator technology to generate high-intensity beams with fewer physical limitations.
According to the company, the new source could deliver up to four times more EUV power than current systems. That increase would allow for higher throughput and efficiency, while reducing the need for each lithography tool to have its own dedicated light source. The prototype is expected to be operational by 2028.
ASML currently leads the global market for EUV lithography tools, using laser-produced plasma (LPP) sources. The technology originated in the U.S. at Cymer, a California-based company later acquired by ASML in 2013. While this method has powered the most advanced chip making processes to date, it is widely seen as approaching its physical limits.
Industry leader considering the approach
xLight says its laser chips technology isn’t just about boosting performance—it could also help keep Moore’s Law alive for decades by enabling even shorter wavelengths of light. The company has reportedly already opened lines of communication with engineers at ASML, a sign that its approach might be taken seriously by the current EUV leader. One likely reason for this connection is the involvement of former Intel CEO Pat Gelsinger. He now serves as executive chairman of xLight’s board and is also a general partner at Playground Global, the VC firm that led the company’s Series B round.
How the product works?
xLight’s approach is based on particle accelerator science. Electrons are first generated and then passed through a sequence of magnets—known as undulators—which forces them to emit powerful beams of coherent light. The firm’s CEO and CTO, Nicholas Kelez, who previously led engineering work at SLAC’s Linac Coherent Light Source, says this method opens the door to a more scalable and efficient EUV platform.
The company sees this effort as a response to growing pressure within the semiconductor industry—particularly around cost, energy requirements, and production capacity. xLight aims to bring FEL-based light sources into commercial chipmaking and strengthen U.S. competitiveness in the field.