American Chip Firm ‘Substrate’ Aims to Reduce U.S. Dependence on ASML with Innovative Lithography Technology

The landscape of the U. S.chip industry is on the verge of a significant transformation. In this context, a startup named Substrate is making strides into the lithography sector, which has long been dominated by ASML, a prominent Dutch company.

Substrate’s Innovative Approach: X-Ray Lithography as a Cost-Effective Alternative

Currently, U. S.manufacturers heavily rely on ASML for advanced chip lithography equipment, as domestic alternatives have yet to emerge. A recent Bloomberg report unveiled Substrate’s ambition to lessen this dependency. The startup is developing lithography equipment that could rival ASML’s Extreme Ultraviolet (EUV) machines, opting for shorter-wavelength X-rays produced by particle accelerators instead of conventional EUV light.

Substrate is building a next-generation foundry to return America to dominance in semiconductor production. To achieve this, we will use our technology—a new form of advanced X-ray lithography—to power them. America invented semiconductors. We will lead again.pic.twitter.com/1rgnWSYYZG

— Substrate (@substrate) October 28, 2025

The introduction of innovative techniques often elicits both excitement and skepticism, and Substrate’s initiatives are no exception. The company aims to create a domestic alternative to EUV technology, leveraging X-rays and offering a more affordable solution. With impressive backing of $100 million, including investments from Peter Thiel’s Founders Fund, Substrate has reached a $1 billion valuation based purely on its advanced lithography concept.

Substrate asserts its technology can significantly reduce the costs incurred from using ASML’s EUV equipment. The startup has already demonstrated its technology to industry insiders, who have labeled it a commendable endeavor. Central to its strategy, Substrate is utilizing X-rays, which have a shorter wavelength than the 13.5 nm EUV, promoting more effective multi-patterning techniques. According to the company, it has substantially lowered the costs associated with chip lithography through a reliable mask/resist flow process.

Pattern of white dashed lines on a dark background. — Image Credits: Substrate

Black and white image showing a pattern of small dots on a grey background. — Image Credits: Substrate

Yet, the road ahead for Substrate hinges on its ability to effectively integrate X-ray lithography into High Volume Manufacturing (HVM) processes. With EUV technology well-established in the industry, the startup may face challenges in achieving early adoption of its innovation. While this initiative represents a significant step toward greater domestic production capability in the lithography sector, claims of readily reducing reliance on ASML may be overly ambitious at this stage.

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