Photo: left to right: Hamed Sattari, Andreas Voelker, Hernán Furci © CCRAFT
CCRAFT, a CSEM spin-off, is moving to the next stage of industrial-scale manufacturing of thin-film lithium niobate (TFLN) photonic chips for AI infrastructure, aerospace, high-speed networks and quantum technologies, becoming the world’s first independent foundry specialising in this technology.
A heavily oversubscribed $7.8 million (CHF 6.3 million) financing round was raised from Swiss and German investors, led by QBIT Capital, with participation from Zurich Cantonal Bank.
The Neuchâtel foundry is expected to increase production capacity to 2,000 wafers per month by 2030.
The initiative offers Switzerland a unique opportunity to position itself not only as a research hub, but also as a manufacturing base in a strategic market of the future. In the global race for next-generation chips for AI and quantum technologies, photonics is widely regarded as one of Europe’s most significant industrial opportunities.
Since April 2025, CCRAFT has been commercialising the TFLN technology developed at CSEM over six years. CSEM will remain a leading technology and innovation partner as industrial production continues to scale up in Neuchâtel.
As the global race for AI and quantum technologies accelerates, Swiss deep-tech company CCRAFT is building industrial-scale production capacity in Neuchâtel for TFLN photonic chips. The company aims to place Switzerland at the forefront of one of the key technologies underpinning the digital economy.
Photonic-chip maker CCRAFT has successfully completed its financing round, raising $7.8 million (CHF 6.3 million). The funds will be used to accelerate CCRAFT’s technology roadmap toward an industrialised production line, boosting manufacturing capacity to meet the needs of first-tier strategic customers. CCRAFT has also already secured more than $3.5 million (CHF 3 million) in public funding and cantonal support. With $11.3 million in new capital, CCRAFT is accelerating its progress toward establishing industrial-scale photonic-chip production in Switzerland. The round was led by QBIT Capital, with participation from Zurich Cantonal Bank, Apprecia Capital, Spacewalk and Blue Wonder Ventures, as well as a leading European operator in AI infrastructure.
The global market is currently building the infrastructure required for artificial intelligence, driving rising demand for next-generation photonic chips capable of transporting data faster while consuming significantly less energy. Industrial-scale manufacturing of photonic chips based on TFLN technology remains largely non-existent today. “CCRAFT was created to industrialise and commercialise a technology platform developed over many years at CSEM. Today, we operate the world’s first independent foundry dedicated to TFLN photonic chips and are already producing for customers across four continents. The next challenge is to build on our lead and ramp up production quickly, so that we can establish ourselves as a global leader in this emerging market,” says Hamed Sattari, co-founder and CEO of CCRAFT.
To meet this growing demand, the company plans to raise the capacity of its production platform in Neuchâtel to 2,000 wafers per month by 2030. The global market for photonic integrated circuits is estimated at between $15 billion and $20 billion. The potential market for TFLN-based photonic chips alone is expected to reach several billion dollars by 2030.
“Europe has largely lost its ability to compete in traditional semiconductor manufacturing. In photonic chips, by contrast, the race is still wide open,” explains Hamed Sattari. “Switzerland is among the world’s leading technology hubs in this field. The challenge now is to turn that technological edge into industrial production, highly skilled jobs and global supply chains, while scaling up faster than international competitors.”
As semiconductors become increasingly important from a geopolitical standpoint, Switzerland is also gaining strategic relevance as a production location. Beyond technological excellence, factors such as supply chain reliability, intellectual property protection, political stability and industrial sovereignty are taking on growing importance.
CCRAFT’s technological foundations rest on more than six years of research and development at CSEM in Neuchâtel. Over the past few years, the team has manufactured photonic chips for more than 40 partners worldwide using CSEM’s pilot production line. The technology is now being commercialised and adapted by CCRAFT for large-scale production, with CSEM continuing to support this transition as a key technology and innovation partner.
“We identified the potential of thin-film lithium niobate photonics many years ago and invested early in developing this technology platform,” says Alexandre Pauchard, CEO of CSEM. “As demand for next-generation photonic chips continues to rise, CCRAFT shows how long-term research can be successfully transferred into industrial production and generate economic impact.”
Photonic chips are cutting-edge microchips that use light to transmit and process data faster and more efficiently than conventional electronic chips. They are widely regarded as a critical technology for the next generation of AI data centres, high-speed communication networks, quantum technologies, as well as advanced applications in sensing and aerospace.
CCRAFT focuses on thin-film lithium niobate (TFLN), one of the world’s most promising platforms for high-performance photonics. TFLN-based chips can achieve exceptionally high data rates while significantly reducing energy consumption. According to CCRAFT, the technology substantially increases data-transmission bandwidth compared with existing solutions, while materially lowering the energy required per transmitted bit.
Demand for these technologies is being driven in particular by the rapid expansion of global AI infrastructure. Modern data centres require hundreds of thousands of photonic chips to efficiently handle the growing volumes of data exchanged between processors, storage systems and networks.
About CCRAFT
CCRAFT SA is a Swiss deep-tech company headquartered in Neuchâtel. The company develops and manufactures thin-film lithium niobate (TFLN) photonic chips for applications in AI data centres, communications technologies, quantum technologies and navigation systems. The CSEM spin-off positions itself as an independent foundry dedicated exclusively to the production of next-generation photonic integrated circuits. For more information, please visit www.ccraft.com
About CSEM
CSEM is a Swiss technology innovation centre that develops breakthrough technologies with high societal impact and transfers them to industry to strengthen the economy. As a non-profit public-private organisation, it has an international reputation and supports innovation activities for companies in Switzerland and abroad.
CSEM operates in precision microfabrication, digital technologies and sustainable energy. To fulfil its mission of bridging research and industry, more than 650 employees from 46 countries work closely with universities, universities of applied sciences, research institutes and leading industrial players. With seven sites in Allschwil, Alpnach, Bern, Landquart, Neuchâtel, Schwyz and Zurich, CSEM is active across Switzerland. For more information, please visit www.csem.ch
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