A Dutch startup receives €4.75 million for its innovative method of producing photonic chips
- Business
- January 14, 2025
Photon IP, a firm based in Eindhoven, has raised €4.75 million in seed money in an effort to expand its novel process for producing energy-efficient photonic devices.
Photonic chips are used by AI systems, data centers, fiber-optic networks, and even some sensors to transmit and receive data using light. Compared to conventional semiconductors, which require electricity to transfer data, these chips are faster and consume less energy, which makes them significant.
However, indium phosphide and other unique compounds known as III-V materials are required to create these high-performance, light-speed processors.
“These materials are relatively scarce and expensive though, so the industry has been looking at ways of using silicon, leveraging all the scale and capability from the world of electronics,” Photon’s CCO John Anderton told TNW.
However, it is extremely challenging to combine silicon and III-V materials on a single chip. Photon has discovered a lucrative business opportunity in just that area.
The business, which was founded in 2022, has created a method for combining silicon and III-V materials onto a single chip that can manage light better, consume less power, and be mass-produced for applications like as high-precision sensors, smarter AI systems, and quicker internet.
“There are many companies making photonic chips, but the challenge is finding the best way to combine and integrate these materials onto a single chip,” said Anderton. “We bring to market a unique, revolutionary technology that allows us to deliver the lowest energy use and the best performance while being scalable.”
Because Photon is fabless, it contracts with well-known manufacturers to produce the chips, who then customize them to meet the startup’s requirements. Photon’s secret sauce is what gives it its economic value.
Deep tech located in Amsterdam Photon’s initial investment was led by VC Innovation Industries, with the Brabant Development Agency and Faber also participating. The fourth and last investor was the venture division of PhotonDelta, an Eindhoven-based organization representing the photonics industry.
The European Innovation Council has already awarded Photon IP a €2 million grant. After a €1.1 million investment in 2022 led by Polish early-stage photonics investment firm Vigo Ventures, today’s seed round represents its second round of private equity funding.
As it prepares to launch its first photonic chip products later this year, Photon informed TNW it will utilize the additional capital to expand its workforce.