Morphotonics Raises €40M to Scale Nanoimprint Display Tech and Enter Data Centers

Morphotonics said it raised €40 million to scale production and expand into optical components for data centers. The round included 3M Ventures, Innovation Industries, BOM, Invest-NL, the European Innovation Council Fund, Ernij Next, and the European Investment Bank.

The financing is part of an extended round that began in 2024 and was raised in multiple installments. The company has used the funding to more than double headcount to 60 employees and still plans to hire, with headcount expected to stabilize around 70 to 75 people.

Morphotonics works in nanoimprint lithography, a manufacturing process used for displays in AR glasses and other optics. Its process creates a “stamp” and applies it to photosensitive materials to make displays, including those used in augmented reality glasses and automotive privacy screens.

The company says it has benefited from ASML’s supply chain and uses many of the same vendors, while operating in a different part of lithography. Its technology supports waveguides, thin glass or plastic components that direct light to show images in front of a wearer’s eyes.

Smart glasses are described as the most in-demand application for Morphotonics’ technology. The article notes use cases tied to waveguide technology in products and companies including Meta Ray-Ban Display, Even Reality, and Magic Leap.

As smart-glass demand grows, manufacturers need equipment capable of producing those displays at scale. Morphotonics says its next machine is being built to produce more than 6 million waveguides a year and is expected to start shipping early next year.

Beyond displays, Morphotonics is pushing into co-packaged optics for data centers. The technology involves Photonic Integrated Circuits, chips that use light instead of electricity to move data between servers and network equipment.

The startup has not yet shipped machines for this market, but it says customers have validated its technology. Today, about 90% of revenue comes from hardware sales, with 10 to 15 systems deployed globally and an expectation of 50 deployments in the next two to three years.