Microsoft-backed Lace raises $40 million for next-gen chipmaking tech

Microsoft-backed Norwegian startup Lace has now raised $40 million in order to accelerate the development of advanced chipmaking equipment. According to a report by Reuters, the company aims to revolutionise semiconductor manufacturing by introducing technology that can shrink chip designs to atomic levels, potentially transforming the future of computing and artificial intelligence.

As per the Reuters report, Lace deals in the use of helium atom beams to etch circuits. This approach could enable designs ten times smaller than those produced by current extreme ultraviolet (EUV) lithography systems, which are dominated by Dutch giant ASML. If successful, Lace’s technology could surpass existing industry standards and open new possibilities for chipmakers worldwide.

“Our technology is a way that can potentially expand the roadmap and be an enabler for doing things that would not have been possible otherwise,” CEO Bodil Holst told Reuters in an interview.

As per the Reuters, the main advantage of the helium atom beam is the industry could create features such as transistors, ‌the ⁠building blocks of modern chips, an order of magnitude smaller to an "almost unimaginable" degree, according to John Petersen, Scientific Director of Lithography at Imec, a research and innovation hub for the chip industry.

The breakthrough has significant implications for the semiconductor industry, which is grappling with the limits of Moore’s Law. Smaller, denser chips would dramatically enhance AI processors, cloud computing infrastructure, and next-generation devices. Lace plans to deliver a pilot test tool by 2029, with commercialization expected in the early 2030s, depending on scalability and industry adoption.



The investment made by Microsoft highlight the strategic importance of securing the chipmaking future, especially as the company continues to expand its AI infrastructure. The analysts also believe that the success of Lace has the potential of reshaping the semiconductor supply chain. It can also help in reducing the dependence on ASML and help in diversifying global chipmaking capabilities.