Currently, manufacturing processes, evolution of equipment and instrumentation are challenges generally affecting an industry that is determined to follow higher customization and individualization. Thus, the European H2020 project “iQonic” establishes a multi-sensorial component manufacturing and photonic system assembly hardware and software environment for zero-defect manufacturing. Based on laser photonics use cases such as quantum cascade lasers, high power diode laser stacks and others, a sensorial network aligned with the current industrial internet of things architectures utilizing edge devices will acquire production defect relevant data. This data represents descriptors for main sources of defects, in particular contamination and surface damages, as well as component irregularities such as geometry deviations. The near real time data, in conjunction with historian data, flows via a unified middleware layer from the sensorial network into a software based manufacturing model, based on artificial intelligence and a decision support system that allows for error compensation throughout the complete manufacturing chain, early malfunction detection on the component and system level, component-rework and re-assessment. Consequently, aiming for zero-defect manufacturing during various stages of production a key performance indicator (KPI) of iQonic is to lift the overall photonics assembly yield to 80%, decreasing the configuration time of the production environment and enabling for the use of recycled parts. Finally, the iQonic supply chain scalable and holistic approach is under development with the goal to provide flexibility, efficiency and sustainability to the manufacturing industry.