Dutch deep-tech company Morphotonics has secured €40 million in funding to accelerate the production of advanced optical manufacturing equipment and expand its nanoimprint lithography technology beyond displays into the fast-growing data-center market.
The Netherlands is home to some of the world’s most important semiconductor and advanced manufacturing technologies. While ASML has become synonymous with lithography for semiconductor production, Dutch technology company Morphotonics is applying a different form of lithography to another emerging frontier: optical components.
The company has spent the past 12 years developing Nanoimprint lithography (NIL) systems designed to manufacture sophisticated optical structures used in applications ranging from augmented reality glasses to automotive privacy displays. With demand for smart glasses increasing globally, Morphotonics is now using its latest funding to scale production while preparing its technology for a new generation of data-center infrastructure.
The €40 million funding round was backed by 3M Ventures, Innovation Industries, BOM, and Invest-NL. The round also attracted participation from the European Innovation Council (EIC) Fund, Dutch family office Ernij Next, and the European Investment Bank (EIB).
From Smart Glasses to Next-Generation Optical Infrastructure
Morphotonics’ core technology is based on nanoimprint lithography, a manufacturing technique in which a specially engineered “stamp” is pressed into photosensitive materials to create extremely precise optical structures.
One of its most important applications is the production of waveguides, thin optical components that guide and redirect light so digital images can be projected into a user’s field of view.
Waveguides are increasingly important to the development of smart glasses and augmented reality devices. Morphotonics’ technology has been used in the supply chain supporting products and platforms associated with companies including Meta Ray-Ban Display, Even Reality, and Magic Leap.
The opportunity is expanding as smart glasses move from niche technology toward a larger consumer electronics category. China, for example, reported that smart-glasses sales doubled during the first eight months of the year. Research firm IDC has also projected that shipments of smart glasses equipped with displays could reach 12.2 million units by 2030.
That growth is creating pressure across the supply chain for manufacturing technologies capable of producing advanced optical components at commercial scale.
A Manufacturing Platform Built for Scale
Morphotonics is not simply selling equipment. Its business model combines manufacturing systems with process expertise and licensing, allowing customers to integrate its technology into their own production environments.
CEO Hugo Da Silva said display manufacturers typically purchase Morphotonics’ equipment as part of their broader manufacturing supply chain, while the company also provides process knowledge and chemicals required to achieve production results.
The company’s manufacturing footprint is strongly connected to Asia, with teams operating in China, Taiwan, and South Korea, alongside a presence in the United States. According to Da Silva, maintaining a strong local presence is essential as customers scale production across major optical and display manufacturing hubs.
Morphotonics has already significantly expanded its workforce. Its headcount has more than doubled to approximately 60 employees, compared with around 30 in September 2024 when Da Silva joined the company. The company expects to continue hiring before reaching a workforce of roughly 70 to 75 employees.
New Machine Targets Millions of Waveguides
The newly raised capital will help Morphotonics increase production capacity and bring its next-generation machine to market.
The company is currently building a new system designed to produce more than six million waveguides annually. Shipments are expected to begin early next year, creating a significant increase in the manufacturing capacity available to customers developing smart glasses and other optical products.
The company’s installed base currently includes 10 to 15 systems globally, with Morphotonics targeting approximately 50 deployments over the next two to three years.
As the installed base grows, the company also expects services and process-related revenue to become a larger part of its business. At present, approximately 90% of Morphotonics’ revenue comes from hardware sales, while around 10% to 15% comes from other activities.
Morphotonics Eyes the Data-Center Opportunity
Perhaps the most significant part of Morphotonics’ expansion strategy lies outside consumer displays.
The company is now developing applications for co-packaged optics, an emerging technology designed to improve how data moves inside increasingly demanding data-center environments.
Modern data centers are handling rapidly growing volumes of information driven by artificial intelligence, cloud computing, and high-performance computing. Optical technologies can help address the limitations of traditional electrical connections by using light to transfer data between chips, servers, and networking equipment.
Co-packaged optics brings optical components closer to computing and networking hardware, with Photonic Integrated Circuits (PICs) playing a key role in moving information using light rather than conventional electrical signaling.
Morphotonics has not yet shipped equipment specifically for this market, but the company says potential customers have already validated its technology.
That gives the €40 million investment a broader strategic purpose: rather than relying exclusively on the growing smart-glasses market, Morphotonics is positioning its nanoimprint lithography platform for multiple high-growth optical applications.
Building on a 12-Year Technology Journey
Morphotonics’ latest financing represents an extended funding round that began in 2024 and was completed through multiple installments.
The company has spent more than a decade developing its NIL technology, operating relatively quietly while building relationships across the global display and optical manufacturing ecosystem. Its proximity to the broader Dutch semiconductor supply chain has also provided access to many of the same specialist suppliers used by larger players in advanced lithography.
The company now enters its next phase with two major opportunities developing simultaneously: the continued commercialization of smart glasses and the rapid evolution of optical connectivity inside data centers.
By combining specialized manufacturing equipment with process expertise and licensing, Morphotonics is seeking to become a critical technology provider behind the optical components powering both wearable displays and next-generation computing infrastructure.
With its workforce expanding, a new high-volume production machine approaching shipment, and a new market emerging in data-center optics, the Dutch deep-tech company is moving from years of technology development toward a much larger commercial growth phase.
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