Construction of a photonic chip factory in Enschede is one step closer

Wouter Hoeffnagel
Wouter Hoeffnagel
27 October 2026
3 min

The construction of New Origin’s planned photonic chip factory at Kennispark in Enschede is one step closer. Solutions have now been found for the electricity and water supply, which was one of the biggest infrastructure bottlenecks.

Photonics is a technology in which information is transmitted and processed using light instead of, or alongside, electrical signals. It makes use of small optical components such as optical fibres. The chips are fast and energy-efficient, and are relevant for applications in fields such as telecommunications, data centres, artificial intelligence, medical technology and sensors.

The new factory in Enschede is set to enable the industrial-scale production of silicon nitride-based photonic chips. Silicon nitride is a material that can transmit light with relatively little loss and is suitable for a broad spectrum of wavelengths. The new production site is set to establish the Netherlands as a major producer of photonic chips.

Electricity and water are only available to a limited extent

Plans for the chip factory have been in the pipeline for some time. However, the limited availability of electricity and water has posed a major obstacle. These utilities are essential for the factory, but are either unavailable or in short supply at many locations in the Netherlands due to overloading of the electricity grid and increasing pressure on the water supply.

A potential solution for the energy supply has been identified in the form of a smart grid solution. The technical details of the solutions are currently being worked out in more detail.

Concrete agreements are also being finalised in the area of water, according to the parties involved. Aqua Twente will supply process water from the Twente Canal for day-to-day operations. In addition, the Vechtstromen Water Board will make treated waste water available as a supplementary water source, subject to certain conditions. The combination of these sources will ensure that the factory’s water requirements can be met.

A wealth of expertise in the Enschede region

The choice of the Enschede region is no coincidence; over the past few decades, the region has built up expertise in the field of photonics, particularly at the University of Twente and the MESA+ research institute. However, the available facilities are not designed for the production volumes required for wider commercial application.

New Origin aims to bridge this gap with a specialised foundry. This is a production facility where various companies can have their chips manufactured without having to set up a full production line themselves. In this way, the model can give both smaller technology companies and established players access to industrial-scale production.

Growing demand

The plans for New Origin are also in line with the broader ambition to strengthen European production capacity for advanced chip technology. Demand for efficient data processing and high-speed optical connections is growing rapidly, driven in part by the rapidly increasing number of data centres and the adoption of artificial intelligence. There is also growing interest in integrated photonics within medical technology, sensor technology and quantum technology.

The chip factory in Enschede could help strengthen the European supply chain and reduce dependence on production capacity outside Europe. This involves not only the actual production of chips, but also retaining local expertise.

International collaboration

New Origin is collaborating on the project with international technology partners, including the Belgian research and innovation centre imec. Within this collaboration, the focus is on scaling up the production of silicon nitride-based photonic integrated circuits.

The province of Overijssel is supporting the establishment of the factory due to the strategic importance of photonic chip production for the Netherlands and Europe. The municipality of Enschede and other regional stakeholders are also working together to create the necessary conditions for the factory’s establishment. The solution for the electricity and water supply is an important step in this regard, but the agreements still need to be further elaborated and formalised.

Wouter Hoeffnagel

Wouter Hoeffnagel is a freelance journalist and copywriter, with interests in both manufacturing industry, IT and the intersection between these topics. He writes a wide range of texts on these topics, ranging from background articles, interviews and news items to blog posts, white papers, case studies and website texts.