# Morphotonics secures €40M to scale nanoimprint lithography for data centers Dutch display tech startup expands into optical components for hyperscale computing. - **Source:** [TechCrunch](https://techcrunch.com) - **Published:** 2026-09-22 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/1892ef2d-e763-4e37-84df-14ebe8481dfe ## Niche lithography specialization Morphotonics operates in nanoimprint lithography (NIL), a specialized process distinct from ASML's photolithography. While ASML dominates chip manufacturing, Morphotonics focuses on creating optical components for displays using stamp-like templates applied to photosensitive materials. Their technology currently serves AR glasses, privacy screens, and emerging data center optics markets. The 12-year-old company has remained low-profile until this funding round. ## Smart glasses market surge China reported smart glasses sales doubling in 2026's first eight months, with IDC projecting 12.2 million units shipped by 2030. Morphotonics' waveguide technology powers displays in Meta Ray-Ban, Even Reality, and Magic Leap products. These waveguides use thin glass/plastic to bend light into wearers' sightlines. The demand spike prompted Morphotonics' production scaling, with 90% of current revenue from hardware sales. ## Strategic funding breakdown The €40M extended round includes 3M Ventures, Innovation Industries, and European Investment Bank participation. Funds will expand headcount from 60 to 75 employees and develop a new machine producing 6M+ waveguides annually. Notably, 10-15 systems are already deployed globally, with plans for 50 deployments in 2-3 years. The financing follows a 2024 round that doubled staff from 30 to 60. ## Data center optics pivot Beyond displays, Morphotonics targets co-packaged optics for data centers using photonic integrated circuits (PICs). These light-based chips could revolutionize server-to-network data transfer. While no systems have shipped yet, customer validation suggests readiness. This expansion leverages existing NIL expertise into a market demanding higher bandwidth and energy efficiency in hyperscale computing. ## Asia-centric manufacturing Morphotonics maintains production teams in China, Taiwan, South Korea, and the U.S. CEO Hugo Da Silva emphasizes local presence for supply chain integration. Customers license both hardware and proprietary processes, with the company providing chemicals and training. This turnkey approach helps display manufacturers incorporate Morphotonics' equipment into existing production lines. ## Revenue model evolution Currently 90% hardware-dependent, the company anticipates growing service revenue through increased deployments. Each system sale includes process licensing to optimize results. The shift toward data center optics may further diversify income streams, as PIC adoption requires specialized manufacturing support. Morphotonics expects to stabilize at 70-75 employees to manage this growth. ## Technology validation timeline The next-generation machine enters production in early 2027, marking Morphotonics' first major hardware refresh since founding. While display applications drove initial growth, data center components represent untapped potential. Customer adoption in this new vertical could position the company as a critical enabler of photonic computing infrastructure. ## Strategic industry positioning Morphotonics occupies a unique niche between semiconductor equipment giants and display manufacturers. Its NIL technology offers cost advantages for mid-volume production runs compared to photolithography. As augmented reality and optical computing converge, the company's dual focus on consumer and enterprise markets provides diversification against sector-specific downturns. ## Sources covering this story - https://techcrunch.com/2026/09/21/morphotonics-raises-e40m-as-it-tk-tk-tk-t/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._