€200M boost: Belgium to build photonics chip hub

Thema Foundries is investing over €200 million to establish a full-scale integrated photonic chip factory in Oudenaarde, Belgium. The new state-of-the-art production and service center aims to address the surging energy demands of data centers and AI by leveraging the power of photonics technology.

The new plant is being constructed on the site of the former BelGaN factory, which went bankrupt in 2024, resulting in 440 job losses. Thema Foundries, through its subsidiary Bellaser BV, acquired the buildings to transform them into a state-of-the-art facility. The aim, according to the initiators, is to establish Europe’s "first full-scale production and service center for integrated photonics". Another initiative, at the High Tech Campus Eindhoven, seems to be further in development, though.

With the start of construction of this pilot plant for photonic chips at the High Tech Campus Eindhoven, the Netherlands aims to underline its ambition to be a key player in the European chip industry. Before the end of this year, TNO will start construction of this factory, where photonic chips based on indium phosphide (InP) will be produced on an industrial scale. The factory is a key element of the European PIXEurope project and is co-financed by the EU Chips Act.

The total investment of €153 million is being funded by PhotonDelta, the Ministry of Economic Affairs, the Ministry of Defense, and TNO itself, among others. The High Tech Campus Eindhoven is also investing in the building and the necessary cleanroom infrastructure. The pilot factory will be established within the Photonic Integration Technology Centre (PITC), a collaboration between TNO, Eindhoven University of Technology, and the University of Twente.

According to Ton van Mol, managing director at TNO, the factory is much more than a technological facility: “This pilot factory is a game changer for Dutch companies and the future earning capacity of our country. It is a critical part of a powerful ecosystem in photonic chips that will enable the Netherlands to distinguish itself globally.”

"A hub for innovation"

Unlike BelGaN, which focused on gallium nitride (GaN) power chips, Thema Foundries will specialize in integrated photonics. This technology uses light particles (photons) instead of electrons to transport and process information, leading to faster and more energy-efficient chips. Integrated photonics is particularly valuable for data centers and AI applications, sectors experiencing rapid growth in energy consumption.

The Oudenaarde plant will be a comprehensive semiconductor factory and service center. It will handle the entire lifecycle of photonic microchips, including production, dicing, packaging, and testing. Furthermore, the facility will expand research and development activities in the field.

imec, a global leader in nanoelectronics, is providing technological support for the project. Gert Bergen, Senior Vice President Corporate Development of imec, emphasized the rarity and significance of this opportunity for Europe. The University of Ghent, through its Photonics Research Group, is also contributing to the project. Financing for Thema Foundries is backed by a group of European investors, with investments estimated in the hundreds of millions of euros.

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Strategic importance

This project is considered a crucial step in strengthening Flanders' technological position in a strategic sector. With the EU Chips Act, Europe aims to increase its role in the semiconductor industry and reduce dependence on Asian and American manufacturers. The establishment of this photonics plant aims to fill a void in the Belgian chip industry, especially after the closure of BelGaN.

Thema Foundries anticipates that, if successful, the plant could grow into a billion-euro company. The new facility is expected to create around 500 jobs, providing a significant boost to the local economy. The transformation of the former BelGaN site into a pioneering photonics center signifies a new chapter for technological innovation in Belgium.