The European Union is investing €380 million to establish a testing facility for photonic chips, with production lines planned in the Dutch cities of Eindhoven and Enschede.

As announced by the Dutch Ministry of Economic Affairs, PIXEurope, a consortium spanning 11 countries, is managing the investment. Of the total investment, €133 million is earmarked for the Netherlands’ pilot production line. While photonics research has so far been concentrated in academia, the private sector is now making significant strides in this field.

Eindhoven-based Smart Photonics is positioned to be a key player in the pilot facility, which is scheduled to break ground in mid-2025. “Through the PhotonDelta project funded by the National Growth Fund, dozens of small and medium-sized enterprises are collaborating with technology and innovation partners, putting the Netherlands at the forefront of photonic chip production,” the ministry stated.

Europe taking a leading role

Dutch Economic Affairs Minister Dirk Beljaarts welcomed the development: “This is excellent news for Dutch innovation and the SMEs working in this field. It’s no coincidence that our government has designated photonics as a strategic technology. We aim to establish a strong competitive position within Europe – from research and innovation through to supply and manufacturing. This is crucial for future Dutch employment, addressing societal challenges, and maintaining our national security.”

The photonics initiative could further strengthen Europe’s position in the semiconductor industry, which revolves around the Dutch company ASML, the world’s leading manufacturer of advanced chip-making equipment. However, the future of chip manufacturing remains dynamic, with technologies like chip stacking, alternative semiconductor materials, and photonics all showing promise at various stages of development.

If these early initiatives succeed, both the Netherlands and Europe could secure a meaningful position in global chip production – a key goal of the European Chips Act. Currently, the Act has attracted tentative interest from major players like TSMC and Intel, though Taiwan remains the primary source of cutting-edge chips.

Why photonics matters

The appeal of photonic chips is straightforward: they use light instead of electrons moving through copper, potentially offering higher speeds, lower latency, and greater efficiency. This technology could be particularly transformative for supercomputers, where massive data movement is crucial. The reduced power consumption also makes it attractive for everyday applications.

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