Frontier IP Group PLC (LSE:FIPP, FRA:8WT) this week highlighted a major funding milestone within its portfolio, as 2D Photonics secured €200 million in Italian state aid to accelerate the scale-up of its graphene-based photonics technology.
Chief executive Neil Crabb said the funding, approved under European Union state aid rules, would enable the construction of a pilot manufacturing facility capable of producing 200mm wafers, marking a significant step toward commercial-scale deployment. He explained that the semiconductor industry is increasingly shifting from electronic to photonic data transmission, driven by the need for higher bandwidth and improved energy efficiency.
Crabb noted that traditional silicon-based technologies are approaching their physical limits, while graphene offers a viable alternative due to its ability to support wider bandwidth, lower energy consumption and reduced cooling requirements.
Here, we take a closer look at what Neil said when he joined the Proactive studio.
Proactive: Neil, good to speak with you today. Your portfolio company 2D Photonics has been awarded a €200 million grant in Italian state aid. That's to accelerate development and scale up its advanced graphene photonics. Can you start by telling us more about 2DP’s technology?
Neil Crabb: Yes, certainly. There’s been a move in infrastructure to use photonics rather than electronics to move data around, because you can get more data through a fibre optic system.
At a chip level, silicon is reaching its physical limits. Graphene is interesting because it can handle wider bandwidth, uses less energy and is less temperature sensitive, so it needs less cooling. That allows continued performance improvements, especially with growing demand from data centres and large language models.
Proactive: So tell us more about the grants, please.
Neil Crabb: When introducing a new material, you need to prove it works at scale. This funding from the Italian government, approved by the EU, will enable a pilot plant to demonstrate large-scale manufacturing at 200mm wafers. It’s a step toward full industrial deployment and adoption by major semiconductor companies.
Proactive: Neil, what does this mean for Frontier IP?
Neil Crabb: Frontier IP owns 9.1% of 2D Photonics, alongside strong institutional backers like Sony, Bosch and CDP. The grant supports large-scale rollout. On a proportional basis, it equates to about 22p per Frontier share, showing the scale of support.
Proactive: What else is happening across your portfolio?
Neil Crabb: Alusid is progressing toward a public listing with European rollout. Pulsiv is benefiting from EU regulation driving adoption of its efficient power electronics.
GraphEnergyTech is gaining traction, particularly as rising silver prices strengthen its graphene-based alternative for solar panels.
The Vaccine Group has reported strong early results, while Cambridge Raman Imaging is expanding applications in environmental and pharmaceutical markets.
Despite challenging economic conditions, the portfolio focuses on cost-reducing technologies. There is also a growing emphasis on technology sovereignty in Europe, supporting domestically developed innovation.