Morphotonics Secures €40M+ Series B to Scale Waveguide Production for AI Glasses

Morphotonics Secures Major Series B Funding for AI Glasses Manufacturing

Morphotonics, a Dutch nanoimprint firm based in Veldhoven, has closed over €40 million in an extended Series B funding round to accelerate production of critical components for AI glasses and augmented reality headsets1

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. The deep-tech company specializes in large-area nanoimprint lithography platforms that manufacture waveguides, the transparent advanced optical components essential for displaying digital images in smart eyewear2

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The €40M+ Series B funding round drew support from returning investors 3M Ventures, Innovation Industries, and BOM, who increased their commitments from an initial close above $10 million in 20241

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. State-backed Invest-NL joined as a major new investor, alongside the European Innovation Council Fund, Ernij Next from the Netherlands, and the European Investment Bank1

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Why High-Volume AR Waveguide Production Matters Now

The timing reflects surging demand for AI glasses in the wearable devices market. In the second half of last year, AI glasses alone accounted for 88% of total smart glasses shipments, driven largely by Meta's expanding product catalogue2

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. Consumer spending on smart glasses is projected to reach $44 billion between now and 20322

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Traditional methods for producing waveguides remain slow and expensive, creating a bottleneck that prevents these devices from reaching mass adoption at consumer-electronics scale1

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. "Everyone is talking about AI glasses right now. AI is moving off the screen and into the real world, into glasses, spatial systems, and a new generation of intelligent devices," said Hugo da Silva, CEO of Morphotonics2

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. "But these and similar devices will not reach mass adoption unless the optical components inside them can be manufactured at consumer-electronics scale."

How Large-Area Nanoimprint Lithography Transforms Production

Morphotonics tackles this manufacturing challenge through its proprietary nanoimprint lithography technology. Unlike conventional photolithography which uses light, this high-resolution fabrication technique mechanically replicates micro- and nanoscale patterns by physically stamping precision designs into materials2

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. The process uses a mould to imprint patterns into liquid resin, which is then cured with UV light1

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This approach enables accurate and repeatable fabrication with superior precision across large panels, allowing manufacturers to produce significantly more parts per run at lower costs1

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. The company's Cypris platform, specifically the Cypris X700, is designed for high-volume manufacturing of waveguides and semiconductor structures2

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Aggressive Growth Trajectory and Global Expansion

Morphotonics demonstrated explosive growth as its revenue tripled from 2024 to 2025, with the company deploying numerous high-volume manufacturing systems for customers worldwide during that period1

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. The company expects substantial further growth ahead2

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Founded in 2014 and headquartered in the Brainport region of Veldhoven, Morphotonics opened an office in China last year to strengthen collaboration with Asian customers2

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. The fresh capital will be deployed to increase production capacity, advance product development, and expand teams across its operations2

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Strategic Implications for Physical AI and European Competitiveness

The investment carries broader implications for the emerging Physical AI landscape, where intelligent systems integrate into real-world devices beyond traditional screens. "Our role is to make that possible. By bringing nanoimprint lithography from specialist production into high-volume manufacturing, we'll ensure the AI glasses and Physical AI future can arrive," da Silva explained2

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Chantal Schrijver, EIB Group office head for the Netherlands, emphasized the strategic importance: "If Europe wants to stay competitive, it needs to stay in front when it comes to cutting-edge technology. One of our main challenges is to make sure that local businesses can stay and grow in Europe, and the public and private sectors need to make sure that these companies can get the right type of financing to do so"2

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As augmented reality headsets and AI glasses transition from niche products to mainstream consumer devices, Morphotonics positions itself as a critical infrastructure provider removing key manufacturing barriers. Watch for the company's production ramp to signal whether supply constraints will ease fast enough to meet accelerating demand from device makers racing to capture the smart eyewear market.