Pat Gelsinger’s New Chapter: Leading xLight in the Semiconductor Arena

After a tumultuous exit from Intel, Pat Gelsinger continues to rise at dawn, navigating the complex semiconductor landscape from a fresh vantage point. As a general partner at Playground Global, Gelsinger is invested in 10 startups, with xLight—a promising semiconductor firm—drawing significant focus. Recently, xLight announced a preliminary agreement for up to $150 million from the U.S. Commerce Department, making the government a key stakeholder.

A Major Win After Intel

Gelsinger’s 35-year journey at Intel came to an unexpected end when the board dismissed him due to doubts about his revival strategies. Nevertheless, the xLight partnership highlights a new trend that raises eyebrows in Silicon Valley: the Trump administration’s willingness to take equity in essential tech companies.

Silicon Valley’s Unease

California Governor Gavin Newsom expressed the industry’s discomfort at a recent event, questioning, “What happened to free enterprise?” This sentiment reverberates through a tech sector historically rooted in free-market ideals.

Driving Innovation in Lithography

During a TechCrunch StrictlyVC event, Gelsinger, who holds the role of executive chairman at xLight, wasn’t fazed by these concerns. His focus is on tackling a crucial bottleneck in semiconductor production: lithography. xLight aims to develop large-scale “free electron lasers” powered by particle accelerators, potentially transforming chip manufacturing processes.

Reviving Moore’s Law

“I’m dedicated to revitalizing Moore’s law in semiconductor technology,” Gelsinger stated, referencing the foundational belief that computing power doubles biennially. “We believe this innovation will reinvigorate Moore’s law.”

Securing Future Funding

The xLight deal marks the inaugural Chips and Science Act award during Trump’s second term and is part of funds designated for promising early-stage firms. While the funding is currently in the letter of intent phase, Gelsinger remained transparent about the complexities involved: “We’ve agreed in principle, but we still have work to do.”

Ambitious Technological Developments

xLight’s vision encompasses creating colossal machines—approximately 100 meters by 50 meters—that will generate extreme ultraviolet light at remarkably precise wavelengths of 2 nanometers. This surpasses the capabilities of ASML, the industry leader dominating the EUV lithography market.

Transforming the Light Source Paradigm

“Half of the semiconductor industry’s investment goes into lithography,” Gelsinger explained. “Innovating on light wavelength and power is crucial for advancing semiconductor technology.” Leading xLight, Nicholas Kelez brings a unique perspective from his experience in quantum computing and large-scale X-ray science initiatives.

Embracing Viability in New Technologies

Kelez highlighted why xLight’s approach is feasible now, contrasting it with ASML’s previous abandonment of a similar strategy. The industry is now primed for this innovation, bolstered by advancements and the ubiquity of EUV lithography in semiconductor manufacturing.

Looking Ahead to 2028

With ambitions of producing silicon wafers by 2028 and launching a commercial system by 2029, xLight is poised for significant growth.

Collaborative Strategies

xLight is not directly competing with ASML but rather collaborating to integrate their systems. Gelsinger mentioned that while there are no contracts from major chipmakers yet, discussions are ongoing with potential partners.

Navigating Complex Competitive Dynamics

As competition intensifies, other startups like Substrate are emerging with similar technologies. However, Gelsinger views them as potential collaborators rather than rivals.

Political Underpinnings of xLight’s Funding

Gelsinger’s engagement with the Trump administration adds complexity to the narrative. Earlier discussions with Secretary of Commerce Howard Lutnick paved the way for this significant funding. While recent developments fueled criticism from some quarters, Gelsinger remains steadfast in framing government engagement as vital for national competitiveness.

Minimal Strings Attached

According to Kelez, the government investment comes with few conditions, allowing xLight the freedom to innovate without heavy oversight. With plans to raise additional funds soon, Gelsinger is optimistic about xLight’s trajectory.

Paving a New Path in Semiconductor Tech

Ultimately, xLight represents more than just another venture for Gelsinger; it’s an opportunity to reinforce his influence in the semiconductor landscape he helped shape, even as he navigates the shifting tides of Silicon Valley ethics.

A Commitment to Corporate Leadership

Gelsinger emphasizes the need for corporate leaders to remain above political fray, claiming, “CEOs and companies should neither be Republican nor Democrat.” He believes the primary goal is achieving business objectives while navigating beneficial policies, regardless of their political origin.

Reflecting on New Opportunities

In response to queries about managing multiple startups post-Intel, Gelsinger expressed contentment, asserting that influencing a broad spectrum of technologies excites him. “I’m just grateful the Playground team welcomed me,” he remarked, before humorously adding, “And I gave my wife back her weekends.” While this may seem a light comment, those familiar with Gelsinger’s work ethic might ponder how long this arrangement will hold.