Microsoft-Backed Lace Secures $40M to Challenge ASML with Helium Lithography
Norwegian startup Lace has raised $40 million to advance its helium atom beam lithography technology, aiming to shrink chip features by an order of magnitude. Backed by Microsoft and Atomico, the company seeks to provide an alternative to ASML's dominant light-based systems in the race for next-generation AI hardware.
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Startup briefing
Key takeaways
- Norwegian startup Lace has raised $40 million to advance its helium atom beam lithography technology, aiming to shrink chip features by an order of magnitude.
- Backed by Microsoft and Atomico, the company seeks to provide an alternative to ASML's dominant light-based systems in the race for next-generation AI hardware.
- Reuters Last Updated (in)
- Ctvnews
In this briefing
Mentioned
Key Intelligence
Key Facts
- 1Lace raised $40 million in a funding round backed by Microsoft, Atomico, and Linse Capital.
- 2The company uses a helium atom beam with a width of 0.1 nanometers, compared to ASML's 13.5nm light beam.
- 3Lace claims its technology can create chip designs 10 times smaller than current industry limits.
- 4Strategic investors include the Spanish Society for Technological Transformation and Norway's state climate investment fund, Nysnø.
- 5The technology is being developed in collaboration with Imec, a leading semiconductor research hub.
| Feature | ||
|---|---|---|
| Lithography Source | Extreme Ultraviolet (EUV) Light | Helium Atom Beam |
| Beam/Wavelength Size | 13.5 nanometers | 0.1 nanometers |
| Market Position | Dominant Market Leader | Early-stage Disruptor |
| Key Backers | Publicly Traded (ASML) | Microsoft, Atomico, Linse Capital |
Who's Affected
Analysis
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.
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.
What to Watch
However, the path from a laboratory breakthrough to a high-volume manufacturing environment is fraught with engineering challenges. ASML spent decades and billions of dollars perfecting EUV technology before it became commercially viable. Lace must now prove that its helium beam can operate with the speed, reliability, and yield required by global foundries. The company’s partnership with Imec, the world-renowned Belgian research hub, provides critical validation. John Petersen, Imec’s Scientific Director of Lithography, has described the potential for feature reduction as 'almost unimaginable,' suggesting that the scientific community views Lace’s approach as a credible successor or supplement to existing methods.
Beyond the technical merits, the rise of Lace reflects a broader trend of 'sovereign tech' and the diversification of the semiconductor stack. With backing from the Spanish Society for Technological Transformation and Norway’s Nysnø, Lace represents a European-led effort to maintain a foothold in the foundational technologies of the digital age. As geopolitical tensions continue to influence chip supply chains, the development of alternative lithography methods in neutral or allied territories like Norway becomes a matter of economic security. For venture capital investors, the high capital requirements of hardware startups are being offset by the sheer scale of the potential reward: a seat at the table in the most critical industry on earth.
Source cluster
Primary reporting
- Reuters Last Updated (in)Microsoft-backed Lace raises $40 million for advanced chipmaking equipment tech
Cite This Page
"Microsoft-Backed Lace Secures $40M to Challenge ASML with Helium Lithography." Startup Intelligence Brief, March 24, 2026. https://getstartupbrief.com/story/lace-funding-helium-lithography-asml-competitor
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