ASML faces a new potential challenger in stealth startup Source Foundry. Hedge fund Situational Awareness recently invested $400 million in the firm. This funding brings the fund's total stake to $500 million. The investment values Source Foundry at approximately $5 billion.
Sequoia Capital backed the startup upon its founding in 2025. Source Foundry develops tools to compete with ASML’s dominant extreme ultraviolet (EUV) lithography machines. These machines are essential for producing advanced AI chips.
The startup currently remains in the pre-product stage. The investment underscores strategic interest in creating competition within a critical semiconductor supply chain chokepoint.