Saad Ullah
● San Francisco semiconductor startup Substrate just secured $100 million to develop an X-ray lithography system that could shake up ASML's grip on advanced chipmaking, according to Stock Sharks. The round, backed by Founders Fund, General Catalyst, and In-Q-Tel, puts Substrate's valuation above $1 billion.
● This marks one of the most ambitious challenges yet to ASML's EUV lithography dominance. ASML currently supplies the world's most sophisticated chip equipment to TSMC, Intel, and Samsung. Substrate's X-ray approach promises better precision, lower power use, and cheaper costs—if the technology actually works.
● But the path ahead is brutal. Building lithography systems takes years of R&D, billions in infrastructure, and complex supply chains. Even with this funding, Substrate faces huge technical and geopolitical obstacles, especially as the U.S.–China chip rivalry intensifies. If scaling fails, the startup could face financial trouble or get acquired early.
● Still, the investment shows growing faith in U.S. chip innovation as export restrictions tighten and domestic manufacturing becomes a priority. The fresh capital will fuel Substrate's R&D, prototypes, and potential CHIPS Act partnerships aimed at boosting American competitiveness.
● The stakes go beyond one startup. A working X-ray lithography system could break ASML's near-monopoly, open advanced chipmaking to more players, and reshape the entire semiconductor supply chain.
Saad Ullah
