Morphotonics raised 40 million euros to expand data center optics

Morphotonics Secures Forty Million Euros for Data Center Optics

Morphotonics, a Netherlands-based deeptech firm specializing in nanoimprint lithography, has raised forty million euros from a new consortium of investors to expand into data center optics.

3M Ventures, Innovation Industries, BOM, and Invest-NL led the new funding round, with additional capital from major European public lenders. CEO Hugo da Silva, who took over in October 2024, reported revenue growth of three to four times year-over-year in 2025.

The company will use the new capital to scale manufacturing capacity, expand its team, and deepen its presence in data center optics and advanced semiconductor packaging.

Morphotonics operates from Veldhoven, the same Dutch city where ASML builds its chip machines, and employs roughly fifty to sixty people. The company has opened an office in China and established a contract manufacturing network to support its existing global deployments.

Its partnership with Leia, a company focused on 3D display technology, provides a very strong commercial anchor in the global consumer electronics space for Morphotonics today.

Why Data Center Optics Matter for AI Infrastructure

The capital infusion targets data center optics, a market expanding rapidly alongside the massive compute demands of artificial intelligence infrastructure. Morphotonics is developing hardware solutions to manufacture Photonic Integrated Circuits that use light rather than electricity to move data between servers.

The company has begun customer validation for this new application, aiming to address surging global demand for faster data transmission driven by AI and cloud computing.

Invest-NL, the Dutch state-backed fund, adds a very significant and strategic sovereign investment dimension to this current funding round today. Its participation signals very robust strategic support for Europe's ambitious push toward technological independence in semiconductors and advanced photonics today.

To date, Morphotonics has supplied hardware for several major well-known global consumer technology brands including Meta and Magic Leap in the key augmented reality sector and beyond.

Many of the company's founders honed their expertise at Philips in optical disc manufacturing later borrowing key and proven techniques for its innovative roll-to-plate nanoimprint approach.

Competitive Landscape and Revenue Model Shift

The round builds on a Series B first closing in September 2024 that raised over ten million dollars from backers. The company earmarked that earlier tranche for automating the company's nanoimprint operations and beginning its strategic pivot toward advanced semiconductor packaging.

Currently, approximately ninety percent of Morphotonics' current total income comes from one-off hardware and service sales across its various successful global deployments around the world today.

Senior management intends to strategically shift toward a more robust recurring revenue stream by incorporating new licensing and ongoing service fees into its core business model.

The company's ambitious roadmap includes increasing its total planned global current installations from fifteen to fifty over the next three years. Investors and analysts will monitor how effectively Morphotonics scales production and navigates its transition from hardware supplier to licensing partner.

The company currently faces very significant competition in the lithography equipment sector, where established and entrenched global giants like Canon hold dominant market positions worldwide today.