PHACTORY is an one-stop-shop virtual factory for supporting photonics innovation in European industry, offering streamlined and open access to the full range of photonics technologies, capabilities, and supply chain activities – covering Technology Readiness Levels (TRL) 2–7.
Photonics technologies – widely used in energy, telecommunications, and other high-tech sectors – have made remarkable advances in recent years. These developments have catalysed significant breakthroughs in adjacent industries, sparking a wave of innovation and growing interest. However, start-ups, SMEs, and innovators in the photonics sector still face persistent challenges in accessing funding, expertise, and support, limiting their ability to scale and commercialise new solutions.
To address these barriers, the EU-funded PHACTORY project will establish a pan-European virtual factory to strengthen photonics innovation and industrial competitiveness across the continent. The project will bring together 30 leading industry and research partners to offer support to 125 carefully selected start-ups, SMEs, and innovators. Through expert guidance, tailored collaboration opportunities, and access to cost-efficient services, PHACTORY aims to unlock the commercial potential of Europe’s photonics innovators.
Project objective
PHACTORY is a unique pan-European consortium functioning as a one-stop-shop virtual factory for supporting photonics innovation in European industry. The project brings together over 30 partners, representing Europe’s top photonics competence centres, to offer streamlined and open access to the full range of photonics technologies, capabilities, and supply chain activities – covering Technology Readiness Levels (TRL) 2–7.
This includes access to pilot lines, PIC (photonic integrated circuit) foundries, and expertise in business development, investment, intellectual property, and EU manufacturing services. The goal is to maximise commercial impact and support the transition from innovation to market deployment.
Building on more than 20 years of successful collaboration in EU-funded projects, the PHACTORY consortium will go beyond the current state of the art. It will focus on engaging SMEs, start-ups, and scale-ups, primarily as first users and early adopters, with the goal of supporting 125 high-impact cases through deep, cross-border technology interventions.
These companies will receive:
- TRL acceleration support via collaborative innovation projects,
- Tailored business assistance to enhance their Investment Readiness Levels (IRL).
The project anticipates tangible impacts including:
- Creation of at least 1,250 new jobs in the EU,
- Generation of €937 million in new revenues,
- Attraction of €190 million in venture capital across the supported companies.
Beyond individual company outcomes, PHACTORY will reinforce the European photonics innovation ecosystem, enhancing value chains, supporting EU manufacturing capabilities, and ensuring the long-term sustainability of support services through integration with the PhotonHub Association.