World’s first industrial photonic chip factory breaks ground

Construction of the world's first industrial factory for indium phosphide photonic chips on 6-inch wafers has officially started today. This is an important step for the Netherlands in becoming a global technology leader. The launch event in Eindhoven was attended by Henna Virkkunen, Executive Vice-President of the European Commission, and Minister Heleen Herbert of Economic Affairs and Climate Policy. “With this project, we are building the economy of tomorrow,” said Herbert.

6-inch photonic wafers are thin, round discs on which chips are fabricated that process data using light rather than electricity. Such wafers are indispensable for energy-efficient AI data centers, 6G networks, medical innovations, and supercomputers. The project is a collaboration between the Dutch main research institute TNO, the Eindhoven University of Technology (TU/e), PhotonDelta, SMART Photonics, and High Tech Campus Eindhoven. The new facility accelerates the path from idea to market-ready solutions. “It's a very important step from lab to factory,” said Tjark Tijn-A-Tsoi, CEO of TNO.

Importance of photonics for defense

Satellites and navigation systems are crucial to our security—and they rely on photonic chips. During her presentation, Minister of Defense Dilan Yeşilgöz emphasized the importance of the factory to the defense sector. “Today's security is not just about weapons, but also about energy and data. That is why today is so important. It is a technological milestone, but also a strategic one. Security is built here, in laboratories and cleanrooms. The technology is small in size, but its impact can be enormous.”

A self-sufficient Europe

The investment in the factory, amounting to more than €150 million, is funded directly by the European Chips Act. Within the pan-European consortium PIXEurope, the factory must ensure that critical components of the digital economy—advanced photonic chips—are developed and produced in Europe, so that Europe remains self-sufficient in this strategic technology.

Henna Virkkunen, Executive Vice-President of the European Commission for Technological Sovereignty, Security, and Democracy, said of the new pilot line: “The EU Chips Act is no longer just an ambition. It has become a tangible reality.” She explains that the construction of the factory follows a number of other European milestones in recent weeks: first, a pilot line in France for ultra-low-power chips for automotive and defense applications, among others, and shortly thereafter, the pilot line in Leuven for next-generation chips using sub-2nm technology, which is crucial for AI, autonomous systems, and 6G.

The Netherlands dares

Government advisor Peter Wennink was also present in Eindhoven. According to him, the construction of the factory in Eindhoven is an important step that shows that the Netherlands dares to do things.

“The reason I wrote my report was that I felt a great sense of urgency—and that feeling is now widely shared. We cannot rely solely on partnerships; we have to look at what we can do well ourselves. That has now sunk in.”

The factory will be fully operational in 2028. It will soon be able to produce up to 10,000 wafers and 10 million chips annually.