Dutch nanoimprint lithography startup Morphotonics raised €40M from 3M Ventures, EIC Fund, and others, and plans to expand into data center optical components

Data center optical component costs could fall as new manufacturing techniques become available.

Dutch startup Morphotonics, specializing in nanoimprint lithography (NIL), has secured €40 million in a funding round backed by 3M Ventures, the European Innovation Council Fund, and others. The company uses NIL to create precise patterns on materials, primarily for displays in augmented reality glasses and other optics, a market experiencing significant growth with projected shipments of 12.2 million smart glasses by 2030. Morphotonics plans to use the capital to scale its production capabilities and expand its technology into the data center sector, specifically for optical components utilizing Photonic Integrated Circuits. This expansion into data centers marks a new strategic direction for the company, which has historically focused on display manufacturing. The company has doubled its headcount to 60 employees and aims to increase its deployed systems globally from the current 10-15 to 50 within the next two to three years.

Morphotonics' successful funding round and strategic pivot highlight a growing trend of deep tech companies diversifying their applications. By leveraging expertise in nanoimprint lithography, initially developed for AR displays, the company aims to address the increasing demand for high-speed data transfer solutions in data centers. This move signals a potential for innovation in the optical interconnects market, where efficiency and cost-effectiveness are paramount for handling the massive data volumes generated by AI and cloud computing.

The expansion into data centers signifies a broader opportunity for specialized manufacturing technologies to disrupt established markets. As data centers evolve towards photonic integration for faster and more energy-efficient communication, companies like Morphotonics, with their precision manufacturing capabilities, are well-positioned to become key suppliers. The success of this diversification will likely encourage other precision manufacturing firms to explore similar applications, potentially reshaping the competitive landscape for data center hardware.