Morphotonics Secures €40M to Propel Display Technology Into Data Center Innovations
ASML from the Netherlands stands as a leader in lithography, employing its machines to imprint designs on silicon wafers in chip manufacturing plants known as fabs. Another Dutch firm, Morphotonics, operates in a related sector: nanoimprint lithography (NIL), which is essential for producing displays for augmented reality (AR) glasses and other optical devices. The company has indicated that it has gained from ASML’s supply network, utilizing many of the same suppliers.
After working for 12 years in developing its technology, Morphotonics has recently announced a €40 million funding round aimed at scaling up production and entering a new market focused on optical components for data centers. The funding, revealed on Tuesday, has attracted contributions from 3M Ventures, Innovation Industries, BOM, and Invest-NL, among others.
Morphotonics employs NIL to fabricate a “stamp” that is then pressed onto photosensitive materials to create various types of displays, including those used in augmented reality glasses and privacy screens for vehicles.
The company’s technology is critical for developing waveguides, which are used in smart glasses like the Meta Ray-Ban Display, Even Reality, and Magic Leap. Waveguides are slender layers of glass or plastic that redirect light to display images directly in front of the user’s eyes.
Although smart glasses represent only one facet of Morphotonics’ offerings, they currently dominate market demand. Recent data from China indicates a doubling of smart glasses sales in the first eight months of the year. Additionally, market researchers from IDC project that shipments of smart glasses with displays could reach 12.2 million by 2030, prompting manufacturers to seek out services like those offered by Morphotonics for mass production.
The recent funding round builds on a larger initiative that started in 2024 and has occurred in multiple phases. Morphotonics has utilized these funds to significantly expand its workforce, growing from 30 to 60 employees since CEO Hugo Da Silva took the helm in September 2024. The company aims to maintain a workforce of around 70 to 75 individuals in the near future.
“Display manufacturers typically integrate our equipment into their supply chains, and we provide training along with the necessary chemicals for them to produce displays,” Da Silva explained. The firm’s production activities are predominantly based in Asia, with teams located in China, Taiwan, South Korea, and the U.S., highlighting the importance of a strong local presence.
Da Silva also noted the company’s next machine, which is in development, is slated to produce over 6 million waveguides annually, with expected delivery in early 2025.
In addition to display technology, Morphotonics is looking to expand into co-packaged optics, a technology for data centers utilizing Photonic Integrated Circuits — chips that transmit data using light rather than electricity. Although they have yet to ship any machines in this area, company officials say their technology is validated by potential customers.
Morphotonics generates revenue through both hardware machine sales and licensing agreements that facilitate optimal customer outcomes. Currently, around 90% of the company’s income stems from hardware, with 10 to 15 units operational worldwide. The firm anticipates increasing deployments to 50 in the next two to three years, which should further boost service-related revenue.
