The Netherlands-based Morphotonics, a nanoimprint lithography specialist, has pocketed €40 million to scale its display tech into data centers. The company, which has been quietly refining its waveguide technology for 12 years, now aims to tackle the growing demand for smart glasses and optical components in data centers. CEO Hugo Da Silva reveals that their next machine will produce over 6 million waveguides annually, marking a significant leap in production capacity.

Morphotonics’ technology is already in use in AR glasses from Meta, Even Reality, and Magic Leap, where it helps create the waveguides that bend light into images. With demand for smart glasses surging, the company sees an opportunity to diversify by supplying optical components to data centers. However, they face competition from established players like ASML and are eyeing a local presence in manufacturing hubs.

The European Innovation Council and a Dutch family office have joined the round, underlining the potential of Morphotonics’ technology. As the market for smart glasses expands, Morphotonics believes its tech could be a game-changer. The startup’s next move is to integrate its hardware with services, aiming for 50 deployments in the next two to three years.