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NLM Photonics, headquartered in Washington State, develops organic electro-optic (OEO) materials for next-generation optical communications
Mitsubishi Chemical Corporation (MCC) is investing in U.S. startup NLM Photonics as the surge in generative AI drives demand to faster, greater energy-efficient optical communications inside data centers.
The investment was made through MCC’s corporate venture capital arm, Diamond Edge Ventures, Inc., as part of NLM’s Series A2 financing round led by Pangaea Ventures.
NLM Photonics, headquartered in Washington State, develops organic electro-optic (OEO) materials to next-generation optical communications. The company was founded on greater than two decades of OEO research at the University of Washington.
Its Selerion materials are designed to consumption with silicon photonic devices, creating hybrid silicon-organic photonic integrated circuits (PICs). The methodology is aimed at enabling optical modulation at higher speeds and with reduce power consumption than conventional inorganic approaches.
The investment comes as the explosive development of generative AI puts unprecedented pressure on data-center infrastructure. As the volume of data moving through data centers rises, optical interconnects—the technologies that enable high-speed data transmission—are becoming increasingly crucial to improving performance while controlling energy consumption.
MCC said materials applied in optical modulation are emerging as a key area to differentiated device performance.
“Optical interconnects have have become one of the true bottlenecks in AI infrastructure, and the materials at the heart of the modulator are where much of the remaining performance gain now sits. NLM has taken organic electro-optic materials out of the laboratory and shown that they can be processed in the way the semiconductor sector actually builds devices.
"That combination of scientific depth and manufacturing realism is why we wanted to be part of this round," said Curtis Schickner, President, Diamond Edge Ventures, Inc.
The investment strengthens MCC’s focus on cutting-edge data processing and telecommunications, one of the business focus areas identified under its regulation vision, KAITEKI Vision 35.
MCC said it plans to deepen its understanding of next-generation optical communications, including optoelectronic integration, while pursuing new business opportunities by leveraging its materials technologies.
With AI workloads rapidly expanding, the investment positions MCC alongside NLM as the startup seeks to advance optical technologies designed to move greater data at higher speeds without a corresponding surge in power consumption.
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