Femtum, a Québec-based developer of advanced mid-infrared pulsed fiber lasers, has raised $16M in an oversubscribed Series A funding round led by BDC Capital. The company's lasers enable precision processing for semiconductor and photonics manufacturing, including wafer trimming for yield recovery and residue-free cleaning. The capital will fund international expansion, production scaling, and accelerated customer adoption.
Photonics Funding Wave Hits AI Era
The round closes amid a March 2026 photonics investment surge. Xscape Photonics raised $37M the day prior for silicon photonics lasers targeting AI data centers. Nvidia's $2B investment in Coherent earlier that month underscores big tech's push into optics. Femtum's mid-IR fiber lasers (2.8-3.4 µm) address PIC yield losses from fabrication variability.
PIC Yields Fall to Fabrication Drift
Photonic integrated circuits face rising yield challenges as complexity grows for AI data center applications. Laser trimming corrects refractive index errors at the wafer level, reducing phase drift without thermal shifters. Current methods like plasma cleaning leave residues, while CO2 dry ice fails at sub-micron scales. Femtum's selective mid-IR absorption targets polymers and residues precisely, preserving substrates. This tackles waste in advanced packaging and co-packaged optics.
Pulsed Mid-IR Lasers Unlock Precision
Femtum's products include the Femtum Nano 2800 (ns pulsed, >100 µJ at 2.8 µm) and Photonics Wafer Laser Trimming Solution, integrating with tools like FiconTEC. Unlike general mid-IR sources from AdValue Photonics or NP Photonics ($20.4M total raised per Crunchbase), Femtum optimizes for fab workflows. Real-time LIT software monitors corrections. Trimming achieves π-shifts with minimal loss, boosting known good die rates.
As Rémi Fournier, Partner at BDC Capital, noted:
"What impressed us is how practical this is… Trimming can reduce chip power by 20–40%…"
Deep-Tech Investors Back Scaling
BDC Capital led with $6M, joined by Fonds de solidarité FTQ, Cathay Ventures, i4 Capital, Boreal Ventures, Quantacet, Hamamatsu Ventures, and Eureka. This mix signals Canadian government support via BDC for deep-tech hardware. Strategic adds like Cathay Ventures position Femtum for Asia fabs. The oversubscribed round follows a >$5M seed in 2024, validating Tier-1 customer traction.
PIC Market Scales to $42B
The photonic IC market stands at $17.05B in 2026, projected to reach $42.21B by 2030 at 19.7% CAGR. AI-driven demand for co-packaged optics fuels growth, amplifying needs for yield tools. Competitors like Azurlight Systems focus on shorter wavelengths, leaving mid-IR gaps Femtum fills.
COPL Spin-Off Drives Expertise
Femtum spun out from Université Laval's COPL, North America's major optics center. Co-founders Louis-Rafaël Robichaud (CEO, MS Laser Engineering) and Simon Duval (CTO, PhD photonics, 994 citations) bring core mid-IR fiber tech. Director Jean-Philippe Bérubé adds ex-Ciena process engineering; Carl Paquet (ex-TeraXion, $160M acquisition) handles business development. This Québec optics ecosystem delivers unmatched domain fit for photonics lasers.
Taiwan Expansion Follows Funding
Post-raise plans target Taiwan via Cathay Ventures for semicon hubs. Production ramps to meet fab demand, with recent hiring surges in laser processes, sales VPs, and quality specialists. Photonics Wafer Laser Trimming demos continue at OFC and SEMICON Taiwan. As CEO Louis-Rafaël Robichaud stated:
"This investment will enable Femtum to rapidly deploy our unique short-pulsed fiber laser platform…"