Morphotonics Raises €40 Million to Boost AR Glasses and Smarter Data Centers

Morphotonics has raised €40 million in an extended funding round to scale its display technology and expand into data center optics.

The Dutch deeptech company will use the funding to ramp up production of its nanoimprint lithography equipment for augmented reality devices while entering the data center market.

How Nanoimprint Lithography Works

This approach uses a stamp to create tiny, precise patterns in photosensitive materials, enabling waveguides and thin, lightweight displays for smart glasses.

Morphotonics has spent 12 years developing the technology and benefits from established semiconductor supply chains, including vendors also used by ASML.

Rising demand for smart glasses is evident in China, where sales doubled during the first eight months of 2026.

Industry forecasts from IDC indicate that shipments of smart glasses with displays could reach 12.2 million units by 2030.

Photonics Push into Data Centers

The company is now targeting co-packaged optics, which use photonic integrated circuits to move data between servers and network equipment using light instead of electrical signals.

The technology could help address data center demands as AI infrastructure expands, although its performance and efficiency benefits will depend on how the systems are implemented.

Morphotonics is building new equipment capable of producing more than 6 million waveguides annually, with first shipments expected early next year.

Its headcount has more than doubled to 60 employees from roughly 30 in September 2024, and the company expects its workforce to stabilize at 70 to 75 people.

Morphotonics currently has 10 to 15 systems deployed worldwide and aims to reach 50 deployments within two to three years.

The company has not yet shipped machines for data center applications, but says customers have validated its technology.

As optical technologies develop, they could eventually support new applications and improvements in data center infrastructure, while broader effects on costs and end-user experiences remain to be established.