The European Commission is doubling down on photonics innovation with a fresh €15 million investment into PhotonHub PHACTORY, a pan-European virtual factory designed to simplify how companies – especially SMEs – develop and commercialize photonics-based technologies.
For many smaller companies, photonics remains out of reach due to fragmented support, limited access to manufacturing facilities, and a lack of deep expertise. PhotonHub PHACTORY aims to change that. Acting as a centralized gateway to over 30 top-tier European competence centers, it helps businesses connect with labs, pilot lines, and experts across borders.
Shrinking Time-to-Market for High-Tech Photonics Products
One of PHACTORY’s biggest promises is speed. The program helps condense innovation timelines from several years to just months. By tapping into this cross-border network, companies working on everything from AI-driven optical systems to advanced quantum communication tools can dramatically reduce their time-to-market by up to 40%.
The initiative builds on the proven success of PhotonHub Europe, which supported over 100 companies in generating €750 million in revenue, creating 1,000 jobs, and raising €250 million in venture capital in just four years. With PHACTORY, the European Commission expects to unlock a massive €4.2 billion in additional SME revenues by 2028.
Bridging the Photonics Gap with a Scalable Innovation Pipeline
Launched on January 1, 2025, and coordinated by Brussels Photonics at Vrije Universiteit Brussel, PhotonHub PHACTORY focuses on improving access to cutting-edge photonics development. It provides a full pipeline from concept to commercialization, supporting Technology Readiness Levels (TRLs) from early R&D (TRL2) through to pilot-scale production (TRL5-7).
Professor Hugo Thienpont, Director of Brussels Photonics, stated:
“This €15M programme enables collaborative innovation in sectors like healthcare, energy, and quantum tech. It’s a step forward for European sovereignty in photonics.”
The platform acts as a virtual launchpad for businesses looking to scale photonics-enabled solutions, providing expert guidance, lab access, and real-world prototyping opportunities across Europe.
Cross-Border Collaboration for Smarter Solutions
With over 30 expert centers onboard, PHACTORY connects businesses to a vast network of specialists. A Dutch startup can co-develop a quantum sensor with a German research lab or collaborate with Italian engineers to build AI-powered photonic chips – all through one seamless platform.
This pan-European collaboration model fosters faster development and ensures that innovation doesn’t stop at national borders. Whether it’s quantum security, solar tech, or diagnostic imaging, PhotonHub PHACTORY serves as a vital connector.
And thanks to EU support covering up to 85% of project costs, companies can access top-tier infrastructure with minimal financial risk. This has already enabled breakthroughs like compact pathogen detection systems and automated laser sorting solutions.
Future-Proofing Europe’s Photonics Industry
PHACTORY isn’t just about products – it’s about people. The initiative includes tailored programs to meet startups and scaleups where they are:
- Startup Launchpad – helps new ventures get off the ground
- Scaling Club – supports companies ready for growth
- Business Coaching – offers strategic advice to established players
Nathalie Debaes, Consortium Management Support Officer, said:
“We want to see European companies lead globally – with photonics lighting the way.”
Running through 2028, the framework also includes free expert evaluations, tailored training sessions, and easy access to labs and testing environments. It directly supports Europe’s strategic push into areas like quantum-secure networks, photonic AI accelerators, and energy-efficient computing systems.
With global competition heating up – especially from China’s €3.2 billion photonics fab investments – PhotonHub PHACTORY ensures that Europe remains competitive in the next wave of high-tech industrial development.
