Last Updated: 22 July 2025
xLight, a U.S.-based startup developing ultra-powerful laser systems, has closed a $40 million Series B equity round to accelerate the development of its extreme-ultraviolet (EUV) free electron lasers (FELs). The oversubscribed round was led by Playground Global, with participation from Boardman Bay Capital Management, Morpheus Ventures, Marvel Capital, and IAG Capital Partners.
The fresh capital will help xLight design and build a full-scale prototype of its EUV FEL platform—technology it says will significantly improve performance, reduce energy use, and increase capacity for advanced semiconductor manufacturing.
The demand for EUV lithography has surged as AI and high-performance computing push the limits of existing chipmaking technologies. xLight’s goal is to address key pain points in the industry: rising costs, limited throughput, and increasing complexity.
“xLight is on a mission to build a transformational new light source for semiconductor manufacturing that addresses the key challenges facing the industry today – cost, capabilities, and capacity.”
Nicholas Kelez, CEO and CTO of xLight
“xLight has the potential to drive the next era of Moore’s Law – keeping chip scaling alive, accelerating fab productivity, and anchoring this foundational capability in the U.S. supply chain,” added Pat Gelsinger, Executive Chairman of xLight and General Partner at Playground Global.
With the new funds, xLight will finalize detailed system designs and initiate construction on its prototype laser platform. The company’s platform leverages proven accelerator physics in a novel configuration to generate high-intensity EUV light for next-gen chip production.
The company is also focused on building scalable and energy-efficient solutions for fabs, with long-term applications not only in commercial semiconductors but also in defense and scientific research.
Founded in 2021 and based in Palo Alto, xLight has already built technical partnerships with several national laboratories and research institutions. These include the Cornell Laboratory for Accelerator-based Sciences and Education (CLASSE), Los Alamos National Laboratory (LANL), and Fermilab.
xLight’s work with CLASSE focuses on commercializing tech developed by Cornell’s CBETA test accelerator. Its collaboration with LANL—funded by New Mexico’s TRGR Technology Readiness Initiative—explores the use of machine learning to automate large-scale accelerator systems. At Fermilab, the company is working on superconducting radio frequency cavities and cryomodules.
Led by CEO Nicholas Kelez, the xLight team brings decades of experience designing and deploying free electron lasers across commercial and government applications. The leadership includes semiconductor veterans and technologists who have built complex systems across national labs and private industry.
The company aims to fill a strategic gap in U.S. semiconductor infrastructure by anchoring EUV light source development domestically.
Playground Global, the lead investor, specializes in early-stage deep tech ventures and has previously backed startups like PsiQuantum, MosaicML, and d-Matrix. Boardman Bay Capital Management, known for its focus on semiconductor and AI infrastructure, has also supported Ayar Labs, Groq, and Credo. Morpheus Ventures, based in Los Angeles, invests across enterprise, data, and compute platforms.
