Howard Lutnick Says Trump Administration Chip R&D Partnership With Former Intel CEO Pat Gelsinger's Startup Can 'Fundamentally Rewrite The Limits'

Core Insights - The Trump administration has signed a preliminary, nonbinding agreement to take an equity stake in xLight, a company focused on developing advanced laser technology for chip manufacturing [1][3]. Investment and Funding - The U.S. Commerce Department plans to invest up to $150 million in xLight to support the construction and testing of a free-electron laser prototype, which is intended to serve as a new light source for extreme ultraviolet lithography [3][4]. - This investment marks the first significant action by the CHIPS Research and Development Office under the Trump administration, following a broader push for domestic chip innovation [6]. Technological Advancements - xLight aims to create a more energy-efficient laser using particle-accelerator technology, which could potentially integrate with ASML's systems or future competitors [2][4]. - The technology developed by xLight could enhance wafer-processing efficiency by 30% to 40% while significantly reducing energy consumption [5]. Company Background - xLight was established in 2021 and is based in Palo Alto, California. The company has appointed former Intel CEO Pat Gelsinger as its executive chairman [4]. - The Trump administration has previously invested over $10 billion in various sectors, including semiconductors, to secure domestic supply chains [7][8]. Market Context - The investment in xLight is part of a broader strategy to bolster U.S. semiconductor capabilities, with the government holding stakes in several companies across the industry [8]. - Global manufacturers, including Taiwan Semiconductor Manufacturing Co., are being encouraged to expand their operations in the U.S. as part of this initiative [9].