Many companies, especially SMEs, face difficulties adopting photonics technologies due to fragmented support ecosystems, lack of access to pilot manufacturing, and limited expertise in scaling innovations. To address this, the European Commission has invested €15M in PhotonHub PHACTORY, a one-stop-shop virtual factory connecting companies with over 30 European competence centers.
The initiative accelerates innovation cycles across sectors like healthcare diagnostics, green energy solutions, and quantum communications by condensing development timelines from years to months. Through PHACTORY’s cross-border network, companies can seamlessly collaborate with labs and research teams across Europe.
PhotonHub PHACTORY builds on the success of its predecessor, PhotonHub Europe, which helped over 100 companies generate €750 million in revenues, create 1,000 jobs, and raise €250 million in venture capital within just four years. The new initiative is projected to unlock €4.2 billion in SME revenues by 2028 while reducing time-to-market for photonics-enabled products by up to 40%.
How PHACTORY bridges the photonics innovation gap
Established on January 1, 2025, as part of the PhotonHub Europe initiative and managed by Brussels Photonics at Vrije Universiteit Brussel, PHACTORY’s goal is to enhance access to photonics innovation while boosting Europe’s competitiveness in photonics-based industries.
Professor Hugo Thienpont, Director of Brussels Photonics and coordinator of the PhotonHub programme, said: “We are delighted to continue to promote and support photonics innovation through PhotonHub PHACTORY. This €15M programme funded by the European Commission will create opportunities for collaborative innovation projects for wide-ranging sectors over the next four years, enhancing European sovereignty in this rapidly growing industry.”
The initiative tackles essential gaps within the photonics value chain by backing projects across Technology Readiness Levels (TRL), starting from early concepts (TRL2) through prototyping (TRL3-4) and upscaling (TRL5-7). This approach allows European companies to smoothly transition from research into manufacturing, utilising leading laboratories and European pilot lines.
PHACTORY’s strategic mission is to develop a virtual factory that promotes cross-border innovation through photonics technologies. It aims to accelerate both technology readiness levels (TRL) and investment readiness levels (IRL) within European industries, fostering business growth, job creation, and the formation of mature value chains in critical sectors.
Accelerating innovation through EU support
As a key enabler for breakthroughs in medical diagnostics, solar energy, and quantum communications, photonics technology is made accessible through EU subsidies covering up to 85% of project costs. This has enabled innovations like miniaturised pathogen detection systems and industrial-scale laser sorting.
PhotonHub PHACTORY’s cross-border approach allows companies from different countries to collaborate efficiently. For example, a Dutch startup could partner with a German lab or Italian research team to develop advanced quantum sensors or AI-enabled optical systems. This model accelerates outcomes while fostering knowledge sharing across regions.
With over thirty European partners, the new framework covers the entire value chain from early-stage concept (TRL2) and prototyping (TRL3-4) to upscaling (TRL5-7). It spans a wide range of cutting-edge technology platforms, facilitating open access and guided orientation to the broadest possible range of photonics expertise, equipment and technologies available from the best facilities throughout Europe.
The end goal? Building future photonics talent
The initiative offers tailored support streams, including a startup Launchpad, a Scaling Club for growing ventures, and Business Coaching for established companies. As Nathalie Debaes, Consortium Management Support Officer, states: “Our goal is simple: to help European businesses shine in the global marketplace – with photonics lighting the way.”
The framework, which runs until 2028, provides free expert assessments, laboratory access, and industry-specific training. With global competition intensifying, particularly from China’s €3.2 billion investment in photonic fabs, PHACTORY ensures Europe’s leadership in quantum security infrastructure and photonic-based AI accelerators through strategic collaboration with manufacturing alliances.
