Morphotonics raises €40M to expand its display tech into data centers

Morphotonics’ €40 million raise reflects more than just AR glasses. The company’s push into co-packaged optics for data centers is the more significant play. These chips use light instead of electricity to move data, offering a performance leap that smart glasses cannot match. This dual-market strategy reduces reliance on a single, nascent consumer market.

Asia’s display manufacturers are Morphotonics’ primary customers, with teams in China, Taiwan, and South Korea. This funding directly benefits the region’s AR supply chain. The company’s goal of 50 deployments in two to three years means more advanced manufacturing capabilities for Asian fabs. This strengthens Asia’s position in next-generation optics production.

The test for Morphotonics is whether its data center tech gains traction. The company has not yet shipped machines in this area, though customers have validated the technology. Success here would diversify its revenue beyond the 90% currently from hardware sales. It would also solidify its role in a critical infrastructure sector, not just consumer tech.