€200M boost: Belgium to build photonics chip hub
Thema Foundries is investing €200 million to build a new photonics chip plant in Belgium, the first of its kind in Europe.
Published on August 22, 2025
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Thema Foundries is investing over €200 million to establish Europe's first 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 is to establish Europe’s first full-scale production and service center for integrated photonics.
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.
A hub for innovation
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.
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.