A Dutch NIL Specialist Steps Out of the Shadows
The Netherlands' ASML is arguably the biggest name in lithography, using its machines to etch patterns onto silicon wafers inside chip fabrication plants, or "fabs." Fellow Dutch company Morphotonics is smaller and works in a different corner of the same field: nanoimprint lithography (NIL), a process used to manufacture displays for AR glasses and other optics. The company says it has benefited from ASML's supply chain and shares many of the same vendors.
Morphotonics has spent 12 years developing that technology, largely under the radar. Now, as demand for smart glasses and other optics surges, the company announced Tuesday that it has raised €40 million to scale up production and push into a new market: optical components for data centers.
The 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 (EIB) also participated.
How Nanoimprint Lithography Works
Morphotonics' NIL approach involves creating a "stamp" and applying it to photosensitive materials to produce a range of displays, from augmented reality glasses to privacy screens for cars.
The technique is particularly useful for creating the waveguide technology used in smart glasses, including the Meta Ray-Ban Display, Even Realities, and Magic Leap. Waveguides are thin pieces of glass or plastic that deflect light along a specific path so that an image appears in front of the wearer's eyes.
Smart glasses are just one application of Morphotonics' technology, but it is currently the most in-demand. This week, China reported that smart glasses sales in the country doubled in the first eight months of the year. In June, market research firm IDC noted that shipments of smart glasses with displays are expected to reach 12.2 million by 2030. As that market grows, manufacturers are looking for machines like Morphotonics' that can produce those displays at scale.
From 30 Employees to 60, With More Hiring Ahead
The latest fundraising is part of an extended round that began in 2024 and was raised in multiple installments. The company has used the money to more than double its headcount to 60 employees, up from roughly 30 in September 2024, when CEO Hugo Da Silva joined. Morphotonics still plans to hire and expects headcount to stabilize around 70 to 75 people.
"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," Da Silva said. The company's manufacturing is heavily concentrated in Asia, with teams in China, Taiwan, South Korea, and the U.S. "Strong local presence is very important," he said.
Da Silva said the company's next machine, currently being built, will be capable of producing more than 6 million waveguides a year. It is expected to start shipping early next year.
A Push Into Co-Packaged Optics
Beyond displays, the expansion includes a push into co-packaged optics, a data center technology that relies on photonic integrated circuits — chips that use light instead of electricity — to move data between servers and network equipment. The startup has not yet shipped any machines in this area, but it says customers have validated its technology.
Morphotonics sells both hardware machines and the process through licensing to ensure customers achieve the best results. Currently, roughly 90% of the startup's revenue comes from hardware sales, with 10 to 15 systems deployed globally. The company expects to reach 50 deployments within the next two to three years, which should also increase its revenue from services.