A novel strain sensing procedure using an optical scanning methodology and diffraction grating is explored. The motivation behind this study is due to uneven thermal strain distribution across semiconductor chips that are composed of varying materials. Due to the unique properties of the materials and the different coefficients of thermal expansion (CTE), one can expect the material that experiences the highest strain to be the most likely failure point of the chip. As such, there is a need for a strain sensing technique that offers a very high strain sensitivity, a high spatial resolution while simultaneously achieving a large field of view. This study goes through the optical setup as well as the evolution of the optical grating in an effort to improve the strain sensitivity of this setup.