August 4, 2025
In a landmark move for European semiconductor innovation, Italian startup Ephos has secured €41.5 million in public funding under the EU Chips Act to build Fab-2, a pioneering photonic chip manufacturing facility in Milan. This investment, approved by the European Commission and disbursed through Italy’s Ministry of Enterprises and Made in Italy (MIMIT), marks a major step toward strengthening Europe’s technological sovereignty in next-generation microelectronics.
Fab-2 will be the first facility in Europe—and globally—dedicated to producing photonic chips on glass wafers, a breakthrough platform for high-speed, low-loss data transmission in AI, quantum computing, and high-performance computing (HPC) infrastructures.
The €41.5 million grant is part of a broader €104.9 million investment plan to establish Fab-2 in the Milan metropolitan area. The facility will specialize in advanced optical materials and glass substrates, enabling the fabrication of photonic integrated circuits (PICs) with superior performance characteristics:
These features make glass-based photonic chips ideal for next-generation datacenters, quantum computing platforms, and secure communication systems—all critical components of Europe’s digital infrastructure.
Founded in 2022 by a team of researchers and engineers from Stanford, Harvard, and Politecnico di Milano, Ephos has quickly emerged as a leader in photonic chip innovation. The company inaugurated Fab-1, its first facility focused on R&D, in 2024 with support from EU and NATO funding. Fab-1 laid the groundwork for a secure and scalable supply chain for photonic components, and now Fab-2 will take that vision to industrial scale.
Ephos is the first startup to receive direct funding under the EU Chips Act, joining a select group of beneficiaries that includes industry giants like TSMC, Infineon, and STMicroelectronics. This recognition underscores the strategic importance of photonic technologies in Europe’s semiconductor roadmap.
Traditional photonic chips are typically built on silicon substrates. While silicon is well-understood and widely available, it presents limitations in terms of optical performance and energy efficiency. Glass, by contrast, offers:
By shifting to glass substrates, Ephos aims to overcome bottlenecks in data transmission and energy consumption, two of the most pressing challenges in modern computing.
The construction of Fab-2 aligns with the EU’s strategic goals under the Chips Act, which seeks to:
Fab-2 will not only expand Europe’s manufacturing capacity but also diversify its technological base, introducing new materials and architectures into the semiconductor ecosystem.
According to Ephos CEO Andrea Rocchetto, “Artificial intelligence is redefining global economies and geopolitical balances. Advanced chip manufacturing is no longer just a technical challenge—it’s a strategic asset. With Fab-2, we’re leveraging European engineering talent to build the infrastructure for the AI era.”
Glass-based photonic chips have the potential to revolutionize multiple industries:
As demand for high-speed, low-energy data processing grows, Ephos’s technology could become a cornerstone of Europe’s digital transformation.
Ephos’s team includes experts in photonics, materials science, and quantum engineering. The company maintains a dual presence in Milan and San Francisco, allowing it to tap into global talent pools and research networks.
Fab-2 will also serve as a hub for collaboration, hosting joint projects with universities, research institutes, and industrial partners. This ecosystem approach is designed to accelerate innovation and ensure that Europe remains competitive in the race for next-gen computing.
The EU Chips Act is a €43 billion initiative aimed at boosting Europe’s semiconductor capabilities. It includes funding for:
Ephos’s selection as a Chips Act beneficiary reflects the EU’s commitment to supporting disruptive technologies and agile innovators. It also signals a shift toward material diversification, as Europe explores alternatives to silicon in pursuit of performance and sustainability.
Ephos’s Fab-2 project represents more than just a new factory—it’s a symbol of Europe’s ambition to lead in photonic and quantum technologies. As global competition intensifies, the ability to produce advanced chips domestically will be crucial for:
With construction set to begin in late 2025 and production expected by 2027, Fab-2 could become a blueprint for future facilities across Europe.
