CCRAFT Raises $7.8 Million to Expand Swiss Photonic Chip Foundry

Insider Brief

• CCRAFT raised USD 7.8 million to expand its independent thin-film lithium niobate (TFLN) photonic chip foundry in Switzerland for AI, networking, aerospace, and quantum applications.
• The company plans to scale manufacturing capacity in Neuchâtel to 2,000 wafers per month by 2030 while commercializing TFLN technology developed at CSEM.
• CCRAFT said the investment will support industrial-scale production and strengthen Switzerland’s role in photonic chip manufacturing.

Press release – As the global race for AI and quantum technologies accelerates, Swiss deep-tech company CCRAFT is building industrial-scale manufacturing capacity for photonic chips in Neuchâtel. The company aims to position Switzerland at the forefront of one of the most important enabling technologies of the digital economy.

Photonic chip manufacturer CCRAFT has successfully completed its funding round, securing USD 7.8 million (CHF 6.3 million). The proceeds will support CCRAFT’s ambitious technical roadmap towards an industrialized production line, unlocking additional manufacturing capacity to serve key Tier-1 customers.

In addition, CCRAFT has already secured more than USD 3.5 million (CHF 3 million) in public funding and cantonal support. With USD 11.3 million fresh capital, CCRAFT is accelerating its path towards establishing industrial-scale photonic chip manufacturing in Switzerland.

The financing was led by QBIT Capital, with participation from Zürcher Kantonalbank, Apprecia Capital, Spacewalk, Blue Wonder Ventures, and a leading European AI infrastructure operator.

The world is currently building the infrastructure for artificial intelligence, driving a growing demand for next-generation photonic chips that transport data faster while consuming significantly less energy. Industrial-scale manufacturing of TFLN-based photonic chips remains largely unavailable.

“CCRAFT was created to industrialize and commercialize a technology foundation developed over many years at CSEM. Today, we operate the world’s first independent foundry for TFLN photonic chips and are already producing for customers across four continents. The next challenge is to capitalize on our head start and scale production quickly to establish a leading global position in this emerging market,” says Hamed Sattari, co-founder and CEO of CCRAFT.

To meet growing demand, the company aims to scale its production platform in Neuchâtel to a production capacity of up to 2,000 wafers (thin discs on which photonic chips are fabricated) per month by 2030.

The global market for photonic integrated circuits is estimated at USD 15–20 billion. The addressable market for TFLN-based photonic chips alone is expected to reach several billion USD by 2030.

Strategic Opportunity for Switzerland

“Europe has largely lost the ability to compete in traditional semiconductor production. In photonic chips, however, the race is still wide open,” says Sattari. “Switzerland ranks among the world’s leading technology hubs in this field. The challenge now is to translate this technological advantage into industrial production, skilled jobs and global supply chains – and to scale faster than the international competition.”

As semiconductors become increasingly important from a geopolitical perspective, Switzerland is also gaining strategic relevance as a manufacturing location. Alongside technological excellence, factors such as trusted supply chains, intellectual property protection, political stability and industrial sovereignty are moving higher up the agenda.

CSEM as a Technology and Innovation Partner

The technological foundation of CCRAFT is built on more than six years of research and development carried out at CSEM in Neuchâtel. Over recent years, the team has produced photonic chips for more than 40 partners worldwide through CSEM’s pilot production line.

The technology is now being commercialized and scaled for high-volume production by CCRAFT. CSEM will continue to support this transition as a key technology and innovation partner.

“We recognized the potential of thin-film lithium niobate photonics many years ago and invested early in developing the technology platform,” says Alexandre Pauchard, CEO of CSEM. “As demand for next-generation photonic chips continues to grow, CCRAFT demonstrates how long-term research can be successfully transferred into industrial manufacturing and economic impact.”