Dutch nanoimprint lithography startup Morphotonics has raised €40 million in an extended funding round to scale up its display manufacturing equipment and expand into optical components for data centers.
The capital injection arrives amid accelerating global demand for smart glasses. Domestic sales of smart glasses in China doubled during the first eight months of this year, while market research firm IDC projects global shipments of display-enabled smart glasses to reach 12.2 million units by 2030.
Morphotonics spent 12 years developing nanoimprint lithography (NIL) technology, a process that applies microscopic stamps to photosensitive materials to create specialized optical displays.
The technique is critical for manufacturing waveguides—thin pieces of glass or plastic that direct light to project images directly before a wearer’s eyes—used in devices like the Meta Ray-Ban Display, Even Reality, and Magic Leap.
The company is currently constructing its next-generation machine, which will be capable of producing more than 6 million waveguides annually. That unit is expected to begin shipping early next year.
Beyond consumer optics, Morphotonics is targeting co-packaged optics for data centers. This emerging application uses Photonic Integrated Circuits—chips that process data via light instead of electricity—to move information between servers and network equipment. While Morphotonics has not yet shipped machines for this sector, potential customers have validated the underlying technology.
The company operates on a hybrid business model, selling both hardware equipment and chemical process licenses to manufacturers.
“Typically, display manufacturers would acquire our equipment as part of the supply chain, and we integrate it into the entire manufacturing process. We teach them the process, we provide the chemicals, and they can manufacture that,” Hugo Da Silva, CEO of Morphotonics, said.
Hardware sales currently account for roughly 90% of revenue, with 10 to 15 systems deployed globally. Morphotonics expects to expand its installed base to 50 deployments over the next two to three years, driving higher recurring revenue from associated chemical and licensing services.
To support its commercial trajectory, the company doubled its workforce from roughly 30 employees when Da Silva joined in September 2024 to 60 today. Total headcount is expected to stabilize between 70 and 75 employees.
“Strong local presence is very important,” Da Silva said, noting that manufacturing operations are heavily concentrated in Asia, backed by regional teams in China, Taiwan, South Korea, and the United States.
Key details regarding the funding round and company structure include:
- Investor Backing: The extended funding round, raised in multiple installments since 2024, includes investments from 3M Ventures, Innovation Industries, BOM, Invest-NL, the European Innovation Council (EIC) Fund, Dutch family office Ernij Next, and the European Investment Bank (EIB).
- Supply Chain Synergy: Headquartered in the Netherlands, Morphotonics utilizes many of the same suppliers and vendor networks as semiconductor lithography leader ASML.
- Product Applications: In addition to smart glass waveguides and data center photonics, Morphotonics’ technology is used to manufacture automotive privacy screens and optical displays.
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