Lace Lithography, founded by a physicist from the University of Bergen, utilizes a beam as narrow as a hydrogen atom to etch chip features up to ten times smaller than the current extreme ultraviolet lithography. Atomico led the Series A funding, with Microsoft’s M12 also taking part.
ASML’s extreme ultraviolet lithography system, a critical machine in the chip industry, etches advanced chips using light with a 13.5-nanometre wavelength. Priced at over $350 million per unit, ASML holds a nearly monopolistic status with no significant alternatives. With the claim of an alternative, Norwegian startup Lace aims to raise $40 million.
Based in Bergen and established in July 2023 by physicist Bodil Holst and former PhD student Adria Salvador Palau, Lace uses helium atom beams instead of light for etching chip patterns.
The beam, about 0.1 nanometres wide, is approximately the width of a hydrogen atom and 135 times finer than ASML’s EUV light. If scalable, the technology could enable chip features ten times smaller than current lithography, reaching “ultimately atomic resolution,” according to Holst.
The $40 million Series A funding round was led by Atomico, with participation from Microsoft’s M12, Linse Capital, Nysnø, and the Spanish Society for Technological Transformation.
Lace has developed prototype systems and aims for a test tool in a pilot fab by 2029, having presented research at a lithography summit in February 2026.
Bodil Holst, holding a Danish-Norwegian background, joined the University of Bergen in 2007. Her research focus includes nanoscale imaging and molecular-beam lithography. She is CEO while holding a professorship at the university.
CTO Adria Salvador Palau completed his PhD in Bergen and operates from Barcelona. Lace’s pre-Series A investors included the European Innovation Council and Innovasjon Norge.
The timing aligns with growing investments in semiconductor supply chain diversification due to geopolitical tensions and AI demand.
Lace targets a market where ASML’s grip is strong but politically sensitive, especially with Dutch export controls on EUV machines to China. A credible EUV alternative, despite its decade-long path to deployment, offers strategic value beyond its immediate revenue potential. The funding from European VC, Norwegian, and Spanish entities suggests Lace’s backing is partly due to geopolitical interests.