US Startup Substrate Plans X-Ray Chipmaking to Rival ASML, TSMC

Substrate, a San Francisco-based startup, has developed an innovative chipmaking tool using X-ray lithography that aims to rival the advanced lithography equipment produced by Dutch firm ASML, currently the sole mass producer of extreme ultraviolet (EUV) lithography machines. The company plans to establish a U.S.-based contract chip manufacturing business to compete directly with Taiwan Semiconductor Manufacturing Company (TSMC) in producing advanced AI chips, potentially reducing production costs significantly. With $100 million in funding and a valuation exceeding $1 billion, Substrate has attracted investments from prominent entities including the CIA-backed In-Q-Tel, highlighting national security and economic interests tied to domestic chip production. Despite the technological promise, Substrate faces formidable challenges, as lithography breakthroughs require extreme precision and have historically eluded even major industry players like Intel and Samsung. If successful, Substrate's technology could disrupt the current duopoly of ASML and TSMC, fostering greater U.S. self-reliance in high-end chip manufacturing and strengthening supply chain security for AI and defense sectors. This initiative aligns with President Trump's policy focus on revitalizing American chip manufacturing to enhance economic stability and national security.