Morphotonics raises €40M to expand its display tech into data centers

Dutch deep-tech firm Morphotonics has secured €40 million to increase manufacturing of its nanoimprint lithography systems and extend into optical parts for data centers, according to techcrunch.com. The company, which has operated for 12 years largely outside the spotlight, develops stamps that pattern photosensitive materials for displays used in AR glasses and other optics. Its announcement on September 21, 2026, frames growing demand for smart glasses and emerging photonics needs in data centers as parallel drivers, with backing from 3M Ventures and a group of European investors.

Morphotonics is a Netherlands-based deep-tech company focused on nanoimprint lithography, or NIL. Rather than etching patterns onto silicon wafers inside a chip fab, the firm creates a stamp that is applied to photosensitive materials to form displays and optical elements. Applications range from augmented reality glasses to privacy screens for automotive use. The company positions itself in a different niche from ASML, the far larger Dutch lithography leader, but says it has benefited from the same supply chain and works with many of the same vendors.

The core optical use case highlighted is waveguides, described as thin pieces of glass or plastic that redirect light along a defined path to present an image in front of the wearer's eyes. This waveguide approach is central to smart glasses and Morphotonics' systems are designed to produce those structures at scale. The company sells both hardware machines and licensed processes, including the chemicals and manufacturing know-how needed to run the equipment, so customers can integrate the capability into broader production lines.

The financing was disclosed on September 21, 2026, and is characterized as part of an extended round that began in 2024 and was assembled in several tranches. Chief Executive Hugo Da Silva, who joined in September 2024, said the capital has already allowed the business to expand operations and that additional hiring is planned. The company frames the raise as a way to meet anticipated volume requirements from display manufacturers while simultaneously validating technology for data-center applications where no machines have yet shipped.

The €40 million round was backed by 3M Ventures, Innovation Industries, BOM and Invest-NL. The European Innovation Council (EIC) Fund, Ernij Next, a Dutch family office, and the European Investment Bank also participated. No additional investor breakdown, valuations or individual check sizes were disclosed in the source material. Specific terms, board changes or ownership percentages were not detailed.

Smart glasses represent the most active current application for Morphotonics' systems, fueled by rising shipment expectations and reported sales growth in China. Market research firm IDC projects that shipments of smart glasses with displays could reach 12.2 million units by 2030, and Chinese authorities reported that sales of smart glasses in the country doubled during the first eight months of 2026. Both figures are single-source citations in the original report. The publication also links Morphotonics' waveguide technology to products including the Meta Ray-Ban Display, Even Realities and Magic Leap, based on statements attributed to the company. Manufacturers seeking to produce such displays at scale are looking for equipment capable of high-volume output, which underpins demand for Morphotonics' machines. Display makers typically acquire the equipment as part of their supply chain, with Morphotonics providing the hardware, chemistry and process integration support.

Morphotonics operates a combined hardware and licensing model, though revenue remains heavily weighted toward machine sales. Roughly 90% of revenue currently comes from hardware, with 10 to 15 systems deployed globally, and the company expects to reach 50 deployments within the next two to three years, which would also lift service-related revenue. Those deployment and revenue-share figures are company-provided expectations. The CEO described the customer relationship as a full integration: display manufacturers buy the equipment, and Morphotonics teaches the process and supplies the chemicals so the customer can handle production internally. Manufacturing is heavily concentrated in Asia, with operational presence in China, Taiwan, South Korea and the United States. The chief executive emphasized that a strong local presence in those regions is important for supporting customers and scaling deployment.

The company's move beyond displays centers on co-packaged optics for data centers, a category that uses Photonic Integrated Circuits — chips that rely on light rather than electricity to transfer data between servers and networking hardware. Morphotonics has not yet shipped machines for this application, but says customers have validated its technology for that use, without naming those customers or disclosing validation criteria. The report does not provide technical performance metrics, pricing or timelines beyond the waveguide machine schedule.

The company's next machine, currently under construction, is intended to produce more than 6 million waveguides per year and is expected to begin shipping early next year. That capacity and schedule are forward-looking statements attributed to Chief Executive Hugo Da Silva, and have not been independently corroborated. The machine would represent a step-up in annual throughput compared with existing systems.

The extended funding since 2024 has enabled the firm to more than double its staff to 60 employees from about 30 in September 2024, when Da Silva joined. The company still plans to add staff and anticipates leveling off at around 70 to 75 people. Those figures, like the production targets, are company disclosures as reported by the outlet, and reflect a scaling phase tied to both display and prospective data-center demand.