Executives from Europe’s largest photonic computer chip companies, including Germany’s XFAB and Aixtron, the Netherlands’ SMART Photonics and Phix Photonics Assembly, VLC Photonics of Spain, France’s Almae, and Switzerland’s Ligentec, have requested €4.25 billion in funding from the European Union as reported by Reuters.
Photonic semiconductors, which use light instead of electrons for calculations, offer speed and power consumption advantages. The group presented an eight-year plan to EU officials to support European supply chains and ensure smaller companies’ access to manufacturing sites. SMART Photonics CEO, Johan Veenstra, highlighted the vulnerability of the EU’s photonics industry without sufficient manufacturing, testing, and packaging capacity.
European Photonic Chip Companies Seek EU Support
European photonic computer chip companies have requested the European Union to provide €4.25 billion ($4.54 billion) in funding to help them compete with competitors in Asia and the United States. Photonic semiconductors, which use light instead of electrons to perform calculations, offer advantages in speed and power consumption. This makes them increasingly beneficial for use in data centres and cars, among other applications.
The companies presented an eight-year plan to EU officials at a summit in Eindhoven, Netherlands. The plan aims to support and build European supply chains and ensure smaller companies have access to manufacturing sites for test runs. The European Union has previously identified photonics as a strategic technology and named it as an area for potential funding under the €43 billion Chips Act passed in April.
The Vulnerability of the European Photonics Industry
Johan Veenstra, CEO of SMART Photonics, highlighted the vulnerability of the European photonics industry at the summit. He stated that despite the EU having a vibrant and growing integrated photonics industry, the lack of volume manufacturing, testing, and packaging capacity makes it susceptible to global events and the policies of competitor countries.
SMART Photonics, a contract manufacturer of photonic chips, raised $110 million in July through a combination of Dutch government funding and debt funding from chipmaker NXP, and equipment makers ASML and VDL Groep, to expand. However, most photonic chips, like most chips, are currently made in Asia, with significant intellectual property in the U.S.
The Risk of Over-Reliance on Asia
The companies warned that low levels of European manufacturing and an over-reliance on Asia for manufacturing and packaging could threaten the EU’s economic security and resilience. The statement was signed by several European photonic companies, including Germany’s XFAB and Aixtron, the Netherlands’ SMART Photonics and Phix Photonics Assembly, VLC Photonics of Spain, France’s Almae, and Switzerland’s Ligentec.
PhotonDelta, a public-private partnership in the Netherlands devoted to funding photonics, also signed the statement. The companies are urging the EU to take action to support the industry and reduce dependence on foreign manufacturing.
The Role of SMART Photonics
SMART Photonics, based in Eindhoven, Netherlands, is a contract manufacturer of photonic chips. In July, the company raised $110 million through a mix of Dutch government funding and debt funding from chipmaker NXP, and equipment makers ASML and VDL Groep, to expand its operations.
Despite this, the company’s CEO, Johan Veenstra, has expressed concerns about the vulnerability of the European photonics industry due to a lack of volume manufacturing, testing, and packaging capacity.
The Future of the Photonics Industry
The future of the photonics industry in Europe is uncertain. While the European Union has identified photonics as a strategic technology and named it as an area for potential funding under the €43 billion Chips Act passed in April, it is unclear what resources are actually being devoted to photonics.
The industry’s reliance on manufacturing in Asia and the significant intellectual property in the U.S. pose challenges. However, with the support of the EU and the implementation of the eight-year plan presented at the Eindhoven summit, the European photonics industry could strengthen its position in the global market.
“Currently, the EU has a vibrant and growing integrated photonics industry, however, without volume manufacturing, testing and packaging capacity we are incredibly vulnerable to global events and the policies of competitor countries,” Johan Veenstra, CEO of SMART Photonics, said at the summit.
Summary
“European photonic computer chip companies, which use light instead of electrons for faster and more energy-efficient calculations, have requested €4.25 billion in funding from the European Union to compete with Asian and American rivals. The group warns that the EU’s economic security is at risk due to low levels of European manufacturing and over-reliance on Asia.”
- Executives from Europe’s largest photonic computer chip companies, including Germany’s XFAB and Aixtron, the Netherlands’ SMART Photonics and Phix Photonics Assembly, VLC Photonics of Spain, France’s Almae, and Switzerland’s Ligentec, have requested the European Union for €4.25 billion ($4.54 billion) in funding.
- The funding is intended to help the European photonic industry compete with rivals in Asia and the United States.
- Photonic semiconductors, which use light instead of electrons for calculations, offer advantages in speed and power consumption. They are increasingly being used in data centres and cars.
- The group presented an eight-year plan to EU officials to support and build European supply chains and ensure smaller companies have access to manufacturing sites for test runs.
- Johan Veenstra, CEO of SMART Photonics, highlighted the vulnerability of the EU’s photonics industry due to lack of volume manufacturing, testing, and packaging capacity.
- The EU has previously identified photonics as a strategic technology and a potential area for funding under the €43 billion Chips Act, but the actual resources devoted to photonics are unclear.
- SMART Photonics raised $110 million in July from Dutch government funding and debt funding from chipmaker NXP, and equipment makers ASML and VDL Groep.
- The group’s statement emphasised that low levels of European manufacturing and over-reliance on Asia threaten the EU’s economic security and resilience.
