Microsoft-Backed Lace Secures $40M to Challenge ASML with Helium Lithography

The global semiconductor industry is currently defined by a singular bottleneck: the ability to print increasingly microscopic circuits onto silicon wafers. For years, the Dutch giant ASML has held a near-monopoly on the Extreme Ultraviolet (EUV) lithography machines required to produce the world’s most advanced chips. However, the emergence of Lace, a Norway-headquartered startup, suggests that the next frontier of Moore’s Law may not be found in light, but in atoms. By securing $40 million in fresh funding from a heavyweight syndicate including Microsoft’s M12, Atomico, and Linse Capital, Lace is positioning itself as a disruptive force in the $100 billion chipmaking equipment market.

At the heart of Lace’s proposition is a radical departure from traditional lithography. While ASML’s state-of-the-art systems use light with a wavelength of 13.5 nanometers to etch circuits, Lace employs a helium atom beam. The physical difference is staggering: Lace’s beam is approximately 0.1 nanometers wide—roughly the width of a single hydrogen atom. This precision allows for the creation of transistors and features that are an order of magnitude smaller than what is currently achievable. According to CEO Bodil Holst, this technology could enable chip designs ten times smaller than today’s cutting-edge standards, effectively extending the roadmap for semiconductor performance at a time when traditional scaling is hitting physical limits.

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By securing $40 million in fresh funding from a heavyweight syndicate including Microsoft’s M12, Atomico, and Linse Capital, Lace is positioning itself as a disruptive force in the $100 billion chipmaking equipment market.

The strategic involvement of Microsoft is particularly telling. As the tech giant races to build out its AI infrastructure, its dependence on a fragile and highly concentrated supply chain—dominated by TSMC for fabrication and ASML for equipment—represents a significant long-term risk. By backing Lace, Microsoft is not just investing in a startup; it is hedging against the stagnation of current lithography techniques. If Lace can successfully commercialize helium atom beam lithography, it would provide chipmakers like Intel and TSMC with a new toolset to pack more computing power into the same silicon footprint, a necessity for the next generation of large language models and autonomous systems.