US Buys Chip Startup Headed by Former Intel CEO Who Accidentally Quit Intel
KEY POINTS
- â˘The US government signed a nonbinding letter of intent in 2025 to invest up to $150 million in xLight, a chip startup.
- â˘Pat Gelsinger, who resigned as Intelâs CEO last year, is now the executive chairman of xLight.
- â˘The investment is aimed at promoting domestic semiconductor manufacturing and uses funds from the CHIPS and Science Act.
- â˘xLight is developing free-electron laser technology to enhance extreme ultraviolet lithography machines made by Dutch company ASML.
In a plot twist worthy of Silicon Valley season 8, the US government signed a nonbinding letter of intent to invest up to $150 million into xLight, a Palo Alto startup led by the recently dethroned Intel CEO Pat Gelsinger. Known for quietly admitting Intel 'made bad decisions over 15 years' and was 'late on AI,' Gelsinger resigned just last year before becoming xLightâs executive chairman. The Trump administrationâs Commerce Department is dangling CHIPS Act cash to reclaim chip supremacy from Taiwanese giant TSMC and South Koreaâs Samsung, whose next-gen chip factories reportedly seep geopolitical drama thicker than a Thanksgiving gravy. Meanwhile, xLight harbors dreams of using free-electron laser magic to sprinkle some ASML-enhanced pixie dust on EUV lithography, promising cheaper, homegrown chip wizardry right in Palo Alto, where dreams and IPOs collide.
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Nothing says 'leadership' like the US buying shares in a startup led by a CEO who just left Intel after crashing its chip party.
US invests $150M in startup led by man who admitted Intel's chip game was a hot mess for 15 years. Plot twist: itâs the same guy now leading the rescue mission.
Pat Gelsinger left Intel amid AI chip drama only to become the star CEO of a startup the government just invested in. Meanwhile, chip giants TSMC and Samsung sip margaritas watching this sitcom.
Source: Businessinsider | Published: 12/2/2025 | Author: Lee Chong Ming
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