Smart Photonics launches expansion to secure European chip independence
Eindhoven, Sunday 8 March 2026
Construction begins this week on a new facility scaling production to 20,000 six-inch wafers annually, a critical move by Smart Photonics and TNO for Europe’s strategic autonomy in integrated photonics.
Scaling for Sovereignty
The skyline of the High Tech Campus in Eindhoven is set to change this Monday, 9 March, as construction officially commences on a multi-million euro pilot plant dedicated to photonic chip production [1]. This facility represents a pivotal collaboration between Smart Photonics and the research institute TNO, situated just 200 metres from the foundry’s existing infrastructure [1]. The expansion is not merely physical; it marks a strategic leap in manufacturing capability, transitioning from standard 4-inch wafers to larger 6-inch substrates [1]. This shift is designed to dramatically reduce unit costs and increase output, with the new facility targeting an annual production capacity of 20,000 wafers once fully operational in 2028 [1]. TNO director Ton van Mol notes that the process steps within the new building will be specifically optimised to facilitate this industrial scaling [1].
Accelerating the Roadmap
The drive towards mass production aligns with a broader vision for the Dutch semiconductor ecosystem. Former ASML CEO Peter Wennink has advocated for a €2 billion investment into the photonic chip sector, underscoring the technology’s potential to become a cornerstone of Europe’s future economy [1]. Smart Photonics, which currently operates between 50 and 60 machines—including lithography equipment from ASML—is positioning itself as the foundry of choice for this emerging market [1]. While the company’s current turnover remains modest and profitability has yet to be achieved, the strategic roadmap envisions a future large-scale factory in the Netherlands capable of churning out 100,000 wafers per year [1]. This ambition is supported by a planned workforce expansion; the company expects to grow its headcount from the current 200 employees to between 300 and 350 staff members to support the new 6-inch line, representing a potential workforce increase of 75 per cent [1].
Next-Generation Connectivity
Parallel to its manufacturing expansion, Smart Photonics is advancing its technological portfolio to meet the voracious data demands of artificial intelligence and hyperscale data centres. On 3 March 2026, the company announced a new 110+ GHz Indium Phosphide Mach-Zehnder Modulator [2]. This component is engineered to support ultra-high-speed optical transmission, specifically enabling 400G/lane PAM4 modulation for next-generation 3.2T interconnects [2]. Such advancements are critical for the telecommunications and AI sectors, which Director Johan Feenstra identifies as key growth markets for the foundry [1]. The technology will be showcased later this month at the OFC Conference in Los Angeles [2].
Resilience in a Volatile Global Market
The expansion in Eindhoven also serves as a buffer against global supply chain vulnerabilities. The Brainport region, recognised as Europe’s leading innovative technology hub and home to giants like ASML and Philips, is heavily reliant on stable logistics for the export of high-value components [4][6]. Recent geopolitical tensions in the Middle East have disrupted container routes and increased energy costs, although local tech leaders including ASML and NXP have reported limited immediate impact on their logistics as of early March 2026 [6]. By cementing a robust production capability within Europe, Smart Photonics contributes to a layer of strategic resilience, ensuring that the continent reduces its dependency on external supply chains for critical photonic technologies. As Feenstra asserts, the company holds a unique position with fifteen years of experience in scaling this specific technology, a head start that competitors are only just beginning to recognise [1].