Swiss deep-tech company CCRAFT has successfully secured $7.8 million in a recent funding round to scale its photonic chip manufacturing. This investment, combined with prior public funding, brings the total new capital to $11.3 million. The funds are earmarked for expanding production capacity in Neuchâtel to meet the rising global demand for advanced chips driven by AI and quantum technologies.
Investment to Fuel Production Expansion
The oversubscribed funding round was led by QBIT Capital and saw participation from Zürcher Kantonalbank, Apprecia Capital, and other notable investors. These proceeds will directly support CCRAFT's technical roadmap toward a fully industrialized production line. This expansion is critical for serving the company's key Tier-1 customers and solidifying its market position.
In addition to the private investment, CCRAFT has already secured over $3.5 million in public funding and cantonal support. This brings the total fresh capital to $11.3 million, providing a substantial foundation for growth. The combined funding significantly accelerates the company's mission to establish industrial-scale photonic chip manufacturing in Switzerland.
Pioneering TFLN Photonic Chip Manufacturing
CCRAFT specializes in thin-film lithium niobate (TFLN) photonic chips, which transport data faster while consuming significantly less energy. This technology is essential for the infrastructure powering artificial intelligence and high-performance computing. The company operates the world's first independent foundry dedicated to producing these next-generation TFLN chips.
Co-founder and CEO Hamed Sattari stated that the company was created to commercialize a technology foundation developed over many years at CSEM. CCRAFT is already producing for customers across four continents, capitalizing on its head start. The next major challenge is to scale production rapidly to establish a leading global position in this emerging market.
Ambitious Goals and Market Opportunity
To meet the surging demand, the company aims to scale its Neuchâtel production platform to a capacity of 2,000 wafers per month by 2030. This goal is set against the backdrop of a global photonic integrated circuits market estimated at $15-20 billion. The addressable market for TFLN-based chips alone is projected to reach several billion dollars by the end of the decade.
According to Sattari, while Europe has fallen behind in traditional semiconductor production, the race in photonic chips remains wide open. Switzerland is well-positioned as a leading technology hub in this specialized field. The key challenge is translating this technological advantage into industrial production, skilled jobs, and robust global supply chains.
Strengthening Swiss Technological Sovereignty
As semiconductors gain geopolitical importance, Switzerland's strategic relevance as a manufacturing location is increasing. Factors such as trusted supply chains, intellectual property protection, and political stability are becoming critical differentiators. This initiative reinforces the nation's role as a global innovation leader and supports Europe's technological sovereignty.
The company's technological foundation was built upon more than six years of research and development at CSEM in Neuchâtel. Through CSEM's pilot line, the team has already supplied photonic chips to over 40 partners worldwide. CSEM will continue its role as a key technology and innovation partner, supporting CCRAFT's transition to high-volume manufacturing.
This successful funding round marks a significant milestone for CCRAFT and the broader Swiss deep-tech ecosystem. The capital injection empowers the company to accelerate its production capabilities and meet the demands of a rapidly growing market. By scaling its pioneering TFLN technology, CCRAFT is poised to become a global leader while strengthening Switzerland's position in a strategically vital industry.