Lace Lithography Raises $40M Series A to Develop Helium-Based Chip Lithography as Alternative to ASML's EUV Dominance
Key Takeaways
- ▸Lace Lithography's helium-atom beam is approximately 135 times finer than ASML's EUV light, potentially enabling chip features ten times smaller than current lithography allows
- ▸The $40M Series A was led by Atomico with support from Microsoft M12, positioning the technology as both a commercial innovation and geopolitical strategic asset
- ▸Lace targets deployment of test tools by 2029, representing a credible long-term alternative to ASML's dominant but politically sensitive EUV monopoly
Summary
Lace Lithography, a Norwegian startup founded by University of Bergen physicist Bodil Holst, has raised $40 million in Series A funding led by Atomico, with participation from Microsoft's M12 venture arm. The company is developing a revolutionary chip-making technology that uses a beam of helium atoms approximately 0.1 nanometres wide—roughly 135 times finer than current extreme ultraviolet (EUV) lithography—to etch chip features up to ten times smaller than existing methods allow.
The breakthrough addresses a critical bottleneck in semiconductor manufacturing: ASML's near-monopoly on EUV lithography systems, each costing over $350 million with limited alternatives. Lace's atomic-scale beam technology could enable transistors and chip structures at what the founders describe as "ultimately atomic resolution," potentially revolutionizing advanced chip manufacturing. The company has already developed prototype systems and is targeting deployment of a test tool in a pilot fabrication plant by around 2029.
The funding round reflects not only commercial interest but significant geopolitical considerations. With semiconductor supply chain diversification a priority for governments globally—and lithography technology a flashpoint in U.S.-China technology competition—Lace's technology carries strategic value beyond near-term revenue potential. The diverse investor base, including European VCs, Norwegian state climate investment funds, and Spanish government-affiliated investors, underscores positioning this innovation as critical infrastructure for Western semiconductor sovereignty.
- Backing from European, Norwegian, and Spanish investors reflects government-level interest in semiconductor supply chain diversification and reducing dependence on single-source lithography providers
Editorial Opinion
Lace Lithography represents a genuinely ambitious attempt to break ASML's near-total stranglehold on advanced chip manufacturing—a bottleneck that has become both a commercial and geopolitical liability. If the company can scale helium-atom lithography to manufacturing volumes, it would be transformative. However, the timeline to a 2029 pilot deployment is aggressive for such fundamentally complex technology, and the gap between laboratory success and fab-scale reliability remains vast. The geopolitical backing is both a strength and a potential distraction; Lace must deliver on physics and manufacturing, not just strategic optionality.
