Dutch nanoimprint lithography (NIL) startup Morphotonics has raised more than €40 million ($46m) in a Series B financing round.

The round saw participation from existing investors 3M Ventures, Innovation Industries, and BOM, alongside new investors Invest-NL, the European Innovation Council (EIC) Fund, Ernij Next, and the European Investment Bank (EIB).

Founded in 2014 and headquartered in Veldhoven, the Netherlands, Morphotonics develops large-area nanoimprint lithography platforms, a manufacturing process that works by pressing “microscopic patterns” into a liquid resin coating using a mould, which is then set with UV light.

Manufacturers are then able to use these platforms to reproduce the patterns with high precision across large surfaces, allowing them to manufacture components at higher volumes and lower costs than traditional production methods, Morphotonics claims.

While the company’s technology is primarily used to manufacture the displays in AR glasses, in a statement, Morphotonics said the new funds will allow it to begin producing optical components for data centers.

“Breakthroughs in photonics and optical systems will be critical enablers for applications ranging from consumer AI devices to next-generation computing architectures, including emerging paradigms such as co-packaged optics,” the company said in a statement.

Morphotonics said the funding will also be used to expand its engineering, commercial, and customer support teams, strengthen supplier and manufacturing networks, and increase production capacity for its Cypris platform – a fully automated, modular manufacturing system designed to mass-produce high-performance optical waveguides.

“Morphotonics is addressing a clear industrial challenge: how to manufacture increasingly complex optical components at the scale and cost required by consumer markets,” said Johan Stins, senior investment manager, at Invest NL. “The company has made significant progress in a short time, and this investment will support its move from technology development into broader industrial deployment.”