NL becomes the centerpiece European photonics sector. 'This moment is similar to the early days of the semiconductor industry'
The Netherlands will soon have a pilot production line to develop photonic chips. We interviewed Ton van Mol, who is directly involved in the project as managing director of TNO at Holst Centre.
Published on December 24, 2024
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It was recently announced that the Netherlands will soon have a pilot production line to develop photonic chips. The EU and eleven participating countries have earmarked €380 million for this project. Of that amount, €133 million is expected to go to Eindhoven and Enschede, the intended locations of this pilot production line. The project, part of the PIXEurope consortium and supported by PhotonDelta and the Ministry of Economic Affairs, puts the Netherlands on the map as a leader in photonics. This offers opportunities for faster AI, more efficient data centers, and innovative applications such as biosensors.
Knowledge institute TNO, the Technical University of Eindhoven, and the University of Twente will realize the proposed facilities. IO+ spoke with Ton van Mol, the managing director of TNO at Holst Centre, who is also responsible for the Photonic Integration Technology Centre (PITC); the partnership uses TNO, Tue, UT, and Photondelta. “Photonic chips are at a tipping point, similar to where the semiconductor industry was decades ago.”
Photonic chips: energy-efficient, lightning-fast data transfer
The urgency for photonic chips is driven primarily by energy consumption in data centers. “Some data centers now need nuclear power plants for their energy supply. The demand for energy-efficient data transfer is huge,” Van Mol emphasizes.
Photonic chips use optical signals instead of electrical ones. “Currently, light pulses must be converted to electrical signals for data processing,” Van Mol explains, ”and then converted back to light. This inefficient cycle can be eliminated with all-optical systems.”
Different material platforms
Unlike traditional semiconductors, where silicon is the main component, photonic chip production uses different material platforms. “You can make a photonic chip based on different material platforms, each with advantages. Depending on the application, you use one or more photonic chips. That makes it extra complex.”
SMART Photonics, for example, specializes in chips made of indium phosphide, which is ideal for telecom applications. The chips from New Origin and Lionix, located in Enschede, on silicon nitride, are more suitable for quantum and sensor applications. This diversity of materials adds an extra layer of complexity but offers more possibilities for different applications. Think of applications such as biosensors, which allow you to perform medical analysis within minutes, and lidar technology for autonomous vehicles.
€380 million - only the beginning
Although the €380 million European investment seems significant, NXP Semiconductors ceo Kurt Sievers called it only a beginning. “Calculations show that we need €500 billion of investment in Europe to reach the 20% market share target. This reality becomes even more dire when we look at investments in Silicon Valley, China, and Taiwan, which have been investing hundreds of billions of euros in their chip production for years,” he told MT Sprout.
The PIXEurope consortium, consisting of 18 institutes from 11 countries, is intended to catch up. The project fits within the broader EU Chips Act, which aims to strengthen Europe's technological autonomy. The global market for photonic chips, valued at $12 billion, is expected to grow to $65 billion by 2032.
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Eindhoven and Enschede as centers of innovation
That the Netherlands was chosen as the location for this pilot production line is no coincidence. Eindhoven has a strong reputation as a high-tech hub, thanks in part to the presence of knowledge institutes like TNO/Holst Centre and companies like SMART Photonics and Effect Photonics. Also, in Enschede, with the University of Twente and companies such as Lionix International, the fundamental development of photonic technology is in full swing.
The challenge of scaling up
Although the first commercial products with photonic chips are already on the market, scaling up remains challenging. The new pilot plant in Eindhoven will enable the move from 4-inch wafers to 6-inch wafers, a significant advance in production capacity. This will allow the industry to produce larger chips at a lower cost, which is essential for large-scale adoption.
Van Mol compares the current photonics phase to the early days of the semiconductor industry: “We want to build the same standardized and tightly organized industry, with specialized foundries and a segmented supply chain. But that takes time, investment, and collaboration.”
Timeline and prospects
If negotiations and contracts are finalized, construction of the pilot plant is expected to begin in mid-2025. The project will run for five to six years and should eventually be handed over to commercial parties.
Van Mol emphasizes that the success of this plant lies not only in the technology but also in creating an ecosystem in which companies and researchers can innovate together. “In the Netherlands, we have a unique combination of expertise, infrastructure, and cooperation. This project is not only a technical challenge but also an opportunity to strengthen our position as a leader in the high-tech industry. Photonic chips could be the key to a more sustainable, efficient future - and we are at the forefront of that revolution.”