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EFFECT Photonics secures additional $24 million

EFFECT Photonics develops and produces chips using light to enable faster and more complex data transmission.

Published on June 27, 2025

EFFECT Photonics

© EFFECT Photonics

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EFFECT Photonics, a producer of highly integrated optical communication products using photonic chip technology, has successfully secured an additional $24 million in Series D funding, totaling $62 million. The company says the extra funding underscores the confidence and sustained support from investors, enabling the firm to pursue its growth strategy and technological advancements in the optical interconnect market.

The Eindhoven-based organization develops optical solutions that are integral to the next generation of data centers and edge networks. Focusing on photonic chip technology, the company specializes in creating highly integrated optical communication products that are key to managing and enhancing data flows across vast and complex network infrastructures using light. This advanced technology enables the efficient capture and transmission of light, which is crucial for improving the performance of telecommunications and meeting the growing demands of the digital age.

EFFECT Photonics' growth, challenges, and opportunities

The recent $24 million addition to EFFECT Photonics' Series D round further endorses the company's technological prowess and market potential. This influx of capital is expected to support the company's ambitious roadmap, which aims to expand its footprint in the rapidly growing optical interconnect market.

“This funding milestone reinforces the strong market demand we’re seeing and allows us to execute aggressively on our roadmap,” said Roberto Marcoccia, CEO of EFFECT Photonics. “We’re grateful for the continued support of our investors and partners as we scale to meet the needs of a rapidly growing optical interconnect market.”

Over the years, EFFECT Photonics has undergone significant structural changes, including a major reorganization that included closing its factory in England and reducing its workforce by half. Despite these challenges, the company has adjusted its manufacturing strategy by collaborating with large-scale production facilities globally, ensuring it meets rising demand efficiently. This strategic pivot positions the firm to leverage its technology more effectively, underscoring its importance in Europe's transition to greener, digital technologies and solidifying its role as a leader within the photonics field.

photonics chip © TNO

Construction of €153 mln photonic chip pilot plant starts in 2025

PhotonDelta, the Dutch Ministry of Economic Affairs and Defense, and TNO will fund the €153 million investment.