Lace Lithography: Startup Aims to Revolutionize Chipmaking with Atomic Precision | $40M Funding

A Norwegian startup, Lace Lithography, is aiming to disrupt the semiconductor industry with a novel approach to chipmaking. The company recently secured $40 million in Series A funding, led by Atomico, with participation from Microsoft’s M12 venture fund and several other investors, to advance its helium beam lithography technology. This technology proposes a significant leap beyond current methods, potentially enabling the creation of chips with features ten times smaller than those produced using existing extreme ultraviolet (EUV) lithography.

Beyond EUV: The Challenge to ASML’s Dominance

The current standard in advanced chip manufacturing is EUV lithography, pioneered by the Dutch company ASML. These machines, costing upwards of $350 million each, leverage light with a wavelength of 13.5 nanometers to etch incredibly intricate circuits onto silicon wafers. ASML currently holds a near-monopoly on this critical technology, a position that has become strategically sensitive given geopolitical tensions and export controls, particularly concerning sales to China. Reuters reports that this context adds to the strategic value of Lace’s development, attracting investment not just for commercial potential but also for geopolitical optionality.

Lace’s approach diverges dramatically from ASML’s light-based system. Instead of photons, Lace utilizes a beam of helium atoms. This seemingly simple change has profound implications. The helium beam employed by Lace measures approximately 0.1 nanometers in width – roughly the diameter of a single hydrogen atom. This is about 135 times narrower than the light beam used in ASML’s EUV systems, as detailed in Analytics Insight.

How Helium Beam Lithography Works

The fundamental limitation of traditional lithography, even EUV, lies in the wave nature of light. Light waves experience diffraction, which limits the resolution achievable. Atoms, however, don’t have this diffraction limit. Lace’s technology bypasses this constraint by using neutral helium atoms. The process, referred to as BEUV (Beyond-EUV) by Lace, essentially “draws” circuits on a silicon wafer with an incredibly fine atomic-scale pen. This allows for the creation of transistors and other chip features at what Lace CEO Bodil Holst describes as “ultimately atomic resolution.”

Bodil Holst, a Danish-Norwegian physicist and University of Bergen professor, founded Lace in July 2023 with her former PhD student, Adria Salvador Palau. Her background in nanoscale imaging and molecular-beam lithography is central to the company’s innovative approach. The company’s CTO, Adria Salvador Palau, now operates from Barcelona, demonstrating a geographically distributed research and development effort.

Implications for the Semiconductor Industry

If Lace can successfully scale its technology, the implications for the semiconductor industry are substantial. Smaller chip features translate directly into increased transistor density, meaning more processing power can be packed into the same physical space. This is crucial for advancements in areas like artificial intelligence, high-performance computing, and mobile devices. The ability to create features ten times smaller than current capabilities could unlock entirely modern possibilities in chip design and performance.

John Petersen, scientific director of lithography at Imec, a leading research and innovation hub in nanoelectronics and digital technologies, told Tom’s Hardware that the Lace approach could shrink transistors to an “almost unimaginable” degree. This suggests a potential for breakthroughs in energy efficiency and computational speed.

Challenges and the Path to Commercialization

Despite the promising potential, significant hurdles remain. Scaling helium beam lithography from a prototype to a commercially viable manufacturing process is a formidable challenge. Maintaining the precision and stability required for mass production at the atomic level will require substantial engineering innovation. The company is aiming to have a test tool operational in a pilot chip fabrication plant (fab) by 2029, a timeline that reflects the complexity of the undertaking.

The development of prototype systems and presentation of research findings at a scientific lithography summit in February 2026 demonstrate Lace’s progress, but translating these results into a robust, high-throughput manufacturing process is a major undertaking. The success of Lace will depend not only on the fundamental physics of the technology but also on overcoming significant engineering and manufacturing challenges.

Material Considerations and Beam Control

Beyond the core lithography process, practical considerations surrounding helium supply and beam control are critical. Helium is a finite resource, and ensuring a sustainable supply chain for large-scale chip manufacturing will be essential. Precisely controlling and focusing the helium beam at the nanoscale requires sophisticated hardware and software, presenting a significant engineering challenge.

Geopolitical Context and Investment Landscape

The investment in Lace reflects a broader trend of increased government and private funding in semiconductor supply chain diversification. Driven by geopolitical concerns and the growing demand for chips, particularly for AI applications, there’s a concerted effort to reduce reliance on a limited number of suppliers. The composition of Lace’s investor base – including European venture firm Atomico, Norwegian state climate investment company Nysnø, and the Spanish Society for Technological Transformation – suggests a strategic alignment with these broader geopolitical goals. The company’s pre-Series A funding also included support from the European Innovation Council and Innovasjon Norge, Norway’s national innovation agency, further highlighting its strategic importance.

Looking ahead, Lace’s progress will be closely watched by the semiconductor industry and governments alike. The company’s success could not only revolutionize chip manufacturing but also reshape the geopolitical landscape of the technology sector. The next few years will be critical as Lace works to translate its innovative technology into a commercially viable reality.