Investment of 100 million euros in Dutch chip factory Smart Photonics

This article was last updated on July 12, 2023

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The Dutch government, together with chip superpowers ASML, NXP and VDL Groep, is investing 100 million euros in the Eindhoven chip factory Smart Photonics.

The chip factory on the High Tech Campus makes photonic chips. They transfer information via light particles (photons), making them more economical and faster than ordinary computer chips.

The Netherlands is a scientific leader in the field of photonics. With the money, the company must continue to grow and strengthen the tech sector.

Humble chip factory

Smart Photonics is a modest chip factory, employing 170 people. The company was founded in 2012 and was the result of a collaboration between Eindhoven University of Technology and Philips. There have been several investment rounds in the past ten years. The three companies also lend the money to Smart Photonics, it is not an investment in exchange for an interest. In addition to the government and the three chip giants, existing investors and financiers are also participating in this financing round.

In 2020, the government already invested 20 million euros in the company to prevent it from ending up in Chinese hands. According to outgoing minister Micky Adriaansens of Economic Affairs, the Netherlands wants to play a role in the development of this new key technology with this new investment of 60 million euros.

It is remarkable that three major players in the semiconductor industry are now investing money directly in the chip factory. Director Johan Feenstra of Smart Photonics is pleased with the financial support of the three fellow companies. “With this round of funding, we receive strong support from the Dutch ecosystem, including strategic players and financial institutions, in our ambition to become the world’s leading maker and supplier of photonic chips.”

The European Chips Act must secure the production of chips for Europe. The European Parliament voted this week on billions in aid for chip factories, state aid that is normally not allowed.