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This study examines the impact of an immersive Virtual Reality Lab for teaching photolithography in semiconductor fabrication. Using Cognitive Load Theory, the Technology Acceptance Model, and self-efficacy theory, 26 undergraduate engineering students at a Midwestern U.S. university participated in a mixed-methods study. Data included knowledge assessments, operation accuracy rates (OAR), task times, surveys, and interviews. Results showed higher knowledge scores, shorter task times, and high OAR in both virtual and physical labs. Participants reported high technology acceptance, moderate cognitive load, and increased self-efficacy. Interviews reinforced these findings, citing strong engagement, greater confidence, and realistic training experiences.