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NewPhotonics and the EIC Accelerator: Light Instead of DSP Chips

September 30, 2026851 words5 min

NewPhotonics, founded in January 2020 and based in Petah Tikva, Israel, designs silicon photonic chips for data centres without owning a factory. Its EIC project targeted the electronic signal processors, or DSPs, inside the optical transceivers that connect data centre servers, which it says account for more than half of a transceiver's power and cost. NewPhotonics set out to do the same work in the optical domain, according to CORDIS.

The European Innovation Council granted €2,499,742 towards a €3.58 million project from December 2022 to November 2024. The final report says NewPhotonics built a chip with its own integrated lasers that cuts transceiver power by 65%, went "from a general concept development, through dozen tape-out of sub-system test chips, to production of commercial grade chips" in 24 months, and "booked our first commercial order to supply thousands of Photonic chips". It cites demonstrations with Credo and Intel, a research collaboration with SoftBank and a prize at the ECOC 2024 conference. In January 2026 it launched a 1.6 terabit-per-second transmitter chip for near-packaged optics, TechTime reported.

€2.50MEIC grant, 70% of a €3.58M project
65%Transceiver power cut claimed
1.6 TbpsNewest chip, January 2026
Not publicRevenue and customers

Company file

Legal entity
NewPhotonics Ltd, Petah Tikva, Israel
Founded
January 2020
Model
Fabless silicon photonic ICs
Partners named
Credo, Intel, SoftBank; test chips at IMEC
Patents
About a dozen applied for, 4 granted (2024)
EIC project
1 Dec 2022 to 30 Nov 2024, closed
EIC funding
Grant first

Where NewPhotonics Stands Now

TechTime called the January 2026 chip "a strategic shift": NewPhotonics had focused on transmitter-on-chip products that upgrade existing pluggable optical modules, and now also offers a chip placed next to processors inside AI servers, with an on-chip laser and 224 Gbps per lane. The report says NewPhotonics joined the LPO-MSA industry group that sets standards for low-power transceivers without DSPs. The company has not published revenue, named the customer behind its first order, or announced a funding round with a disclosed amount.

"We have completed a full photonic IC R&D cycle within 24 months ... meeting all program objectives on time while exceeding performance target!"

NewPhotonics, final report to the EIC

The Technology: Signal Processing in Light

An optical transceiver converts electrical data into light for fibre links. The DSP inside multiplexes data streams and converts modulation formats, and grows more power-hungry as AI pushes data rates up. NewPhotonics replaces these functions with photonic circuits and adds an "optical equalizer" that it says solves interoperability problems in DSP-free transceivers. It demonstrated 224 Gbps performance over 10 km in September 2023.

What the EIC Project Promised, and What CORDIS Shows

The project promised an all-optical chip architecture to replace DSPs. The report describes commercial-grade chips, industry demonstrations and a first volume order, and claims all objectives were met on time. These are company statements; independent test results and the order's customer are not public. CORDIS lists the project as closed.

  1. Commercial-grade chipDeliveredPer final report.
  2. Industry validationDeliveredCredo, Intel, ECOC prize.
  3. First commercial orderDeliveredThousands of chips.
  4. Volume revenueUnverifiedNot published.

The Money

NewPhotonics has not announced its funding rounds publicly with amounts, and commercial trackers give different totals, so its funding is not reported here. Whether the EIC Fund invested after the grant has not been disclosed. It has not published accounts.

What Cannot Be Checked

Questions for the EIC

Who placed the first order and for how much, NewPhotonics' revenue, whether the EIC Fund invested and where its chips are manufactured are not public.

Why Europe Should Care

The report says NewPhotonics made its first test chips at IMEC and other European fabs. The EIC funded an Israeli company in a field, photonics for AI data centres, that is growing fast. Its public record shows technical progress and industry recognition; its commercial scale remains undisclosed.

What the project promised

An all-optical chip that replaces power-hungry DSPs in data centre transceivers.

What the record shows

Commercial-grade chips, a first order, partnerships with Intel, Credo and SoftBank, and a new 1.6 Tbps chip.

The Verdict

Delivered, commercial scale unknown

By its own account NewPhotonics hit every EIC objective and kept launching products afterwards. Without published revenue or named customers, how far it has scaled cannot be judged.

NewPhotonics and the EIC have not been asked for comment for this article. It is based entirely on public records and published statements, linked throughout.

Start with the EIC Accelerator

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Eureka Network

Eureka Network offers multiple international collaborative R&D programs including Network Projects, Clusters, Eurostars, Globalstars, and Innowwide, with funding ranging from €50K to €6.75M per project depending on the specific program. The network focuses on market-driven innovation and deep-tech development across diverse technology sectors including ICT/Digital, Industrial/Manufacturing, Bio/Medical Technologies, Energy/Environment, Quantum, AI, and Circular Economy. Applicants include SMEs, large enterprises, research organizations, universities, and startups, with Eurostars specifically targeting R&D-performing SMEs.

EIC Transition

EIC Transition provides up to €2.5 million in funding to bridge the 'valley of death' between laboratory research and market deployment, focusing on technology maturation and validation. The program supports single legal entities or small consortia of 2-5 partners including SMEs, start-ups, spin-offs, and research organizations. Technology areas include Health/Medical Technologies, Green/Environmental Innovation, Digital/Microelectronics, Quantum Technologies, and AI/Robotics.

EIC STEP Scale-Up

EIC STEP Scale-Up offers substantial equity investments of €10-30 million for established deep-tech companies ready for hyper-growth and large-scale expansion. The program targets SMEs or small mid-caps with up to 499 employees who have secured pre-commitment from qualified investors. Focus areas include Digital & Deep Tech (Semiconductors, AI, Quantum), Clean Technologies for Net-Zero goals, and Biotechnologies.

EIC Pre-Accelerator

EIC Pre-Accelerator is a pilot program providing €300,000-€500,000 in funding for early-stage deep-tech development and preparation for the EIC Accelerator program. The initiative is exclusively available to single SMEs or small mid-caps from 'Widening countries' to support regional innovation development. The program covers deep-tech innovations across physical, biological, and digital domains.

EIC Advanced Innovation Challenges

EIC Advanced Innovation Challenges is a new pilot program offering €300,000 (Stage 1) and up to €2.5 million (Stage 2) for breakthrough deep-tech solutions through ARPA-style staged funding with demand-side integration. The program targets single entities or small consortia (2-3 partners) including SMEs, start-ups, and research organizations. Focus areas include Physical AI for autonomous robotics and New Approach Methodologies (NAMs) for animal-free biomedical testing, requiring TRL 4 entry with end-user commitment.

EIC Pathfinder

EIC Pathfinder offers up to €3 million for Open calls and up to €4 million for Challenge-based calls to support early-stage research and development with proof-of-principle validation. The program requires research consortia with a minimum of 3 partners from 3 different countries, including universities, research organizations, and SMEs. Technology focus areas include Health/Medical, Quantum Technologies, AI, Environmental/Energy, and Advanced Materials.

EIC Accelerator

EIC Accelerator provides flexible funding options including blended finance (€2.5M grant + €0.5M-€10M equity), grant-only (up to €2.5M), or equity-only arrangements for scale-up and market deployment of breakthrough innovations. The program targets SMEs, start-ups, and small mid-caps with up to 499 employees, with MedTech/Healthcare representing 35% of funded projects. Other technology areas include Biopharma, Energy, AI, Quantum, Aerospace, Advanced Materials, and Semiconductors.

Innovation Partnership

Innovation Partnership facilitates collaborative innovation between public and private sectors with typical funding of €1-5 million per project. The program supports cross-sectoral strategic technologies through public-private partnerships and consortia. Projects focus on addressing societal challenges through collaborative innovation approaches.

Innovation Fund

The EU Innovation Fund provides substantial funding of €7.5 million to €300 million for large-scale demonstration of innovative low-carbon technologies. The program targets clean energy, carbon capture, renewable energy, and energy storage technologies to accelerate the transition to a low-carbon economy. Applicants include large companies, consortia, and public entities capable of implementing large-scale demonstration projects.

Innovate UK

Innovate UK offers various programs with funding ranging from £25K to £10M depending on the specific initiative, supporting business-led innovation, collaborative R&D, and knowledge transfer. The organization funds projects across all sectors with particular focus on emerging technologies and supports UK-based businesses, research organizations, and universities. Programs are designed to drive economic growth through innovation and technology commercialization.

Industrial Partnership

Industrial Partnership provides €2-10 million in funding for industrial research and innovation partnerships focusing on manufacturing, industrial technologies, and digital transformation. The program supports industrial consortia and research organizations in developing collaborative solutions for industrial challenges. Projects aim to strengthen European industrial competitiveness through strategic partnerships.

Eurostars

Eurostars is a joint EU-Eureka program offering €50K-€500K for international R&D collaboration specifically led by SMEs. The program takes a bottom-up approach, accepting projects from all technology fields without predefined thematic restrictions. R&D-performing SMEs must lead the consortium and demonstrate significant R&D activities.

LIFE Programme

The LIFE Programme provides €1-10 million in funding for environmental protection, climate action, and nature conservation projects across the European Union. The program supports environmental technologies, climate adaptation strategies, and biodiversity conservation initiatives. Applicants include public authorities, private companies, NGOs, and research institutions working on environmental and climate challenges.

Neotec

Neotec is a Spanish program offering €250K-€1M in funding for technology-based business creation and development, supporting the growth of innovative Spanish SMEs and start-ups. The program covers all technology sectors and aims to strengthen Spain's technology ecosystem. Funding is specifically targeted at Spanish technology-based SMEs and start-ups to enhance their competitiveness and market presence.

Thematic Priorities

EU Thematic Priorities encompass various programs aligned with EU strategic priorities including green transition, digital transformation, health, and security initiatives. Funding amounts vary based on the specific program and call requirements, with projects designed to address key European challenges. Applicant eligibility varies by specific program and call, with different requirements for different thematic areas.
EIC AcceleratorBeneficiary Deep Dive#NewPhotonics#silicon photonics#data centres#semiconductors#AI infrastructure#Israel
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