Woofun AI reports that chip manufacturing startup xLight is negotiating a $350 million funding round, expected to be led by Boardman Bay Capital Management and Bain Capital. The US government has committed $150 million through the Chip and Science Act, bringing total funding to approximately $200 million. Former Intel CEO Pat Gelsinger serves as chairman, with his firm Playground Global having invested in 2025.

xLight aims to develop alternative light sources for Extreme Ultraviolet lithography to reduce advanced server chip costs. ASML CEO Christophe Fouquet confirmed a technology demonstration collaboration but noted significant challenges remain. xLight plans to build its first prototype site in Albany, New York, targeting a usable light source by 2028. The company signed a $4.2 billion non-binding financing agreement for seven facilities, while competitor Substrate develops X-ray lithography.