Dutch government, industry players push €100 mil. into Eindhoven chips company

The Dutch government, players in the semiconductor industry, and financial institutions invested 100 million euros into SMART Photonics, the Dutch foundry for photonic integrated circuits. The Eindhoven-based company will use the money to up its manufacturing capabilities and accelerate the development of its next-generation chips, SMART Photonics said.

The Dutch government pushed 60 million euros into the company through the National Growth Fund project PhotonDelta. The rest of the money came from industry players ASML, NXP, and VDL Groep and financial institutions ING, BOP Impact Ventures, and Deep Tech Fund. Previous investors also joined the funding round again.

SMART Photonics makes photonic chips, which transfer information via photons. That makes them more energy efficient and faster than traditional chips. The Netherlands hopes to become a leader in this fast-growing industry, demissionary Minister Micy Adriaansens of Economic Affairs and Climate said. “For the prosperity and economic growth of the future and to maintain our competitiveness, it is necessary that we develop innovative key technologies like integrated photonics within the European Union.”

The company will use the funds from this investment round to strengthen its role as the leading manufacturer in the growing European photonic value chain, SMART Photonics said. “With this round of funding, we receive strong support from the Dutch ecosystem in our ambition to become the globally leading foundry for Photonic Integrated Chips (PICs),” said CEO Johan Feenstra.

ASML, NXP, and VDL Groep hope that this funding will help SMART Photonics take the “essential next steps to further mature the organization, strengthen technical capabilities, and extend their manufacturing base,” the three fellow-Brainport region companies said in a joint statement. “Our additional funding will help strengthen the Braiport and wider Dutch and European Photonics ecosystem. SMART Photonics becoming a strong and versatile foundry can greatly benefit the growing number of fabless photonic chip design companies in the Brainport region.”