XLight, a company based in Palo Alto, has raised US$40 million in an oversubscribed series B funding round.

The round was led by Playground Global, with participation from Boardman Bay Capital Management, Morpheus Ventures, and other investors.

The funding will support development of extreme-ultraviolet (EUV) free electron lasers (FEL) for semiconductor and national security use.

Founded in 2021, xLight collaborates with research institutions such as the Cornell Laboratory for Accelerator-based Sciences and Education (CLASSE), Los Alamos National Laboratory (LANL), and Fermi National Accelerator Laboratory.

Its FEL platform aims to improve semiconductor manufacturing scalability and efficiency.

The company seeks to strengthen the US supply chain through advanced laser technologies.