Tower Semiconductor and Semtech announced an expanded multi-year agreement to secure dedicated silicon germanium (SiGe) manufacturing capacity across facilities in the United States, Israel, and Japan. The deal extends a 20-year partnership between the two companies and targets production of optical interconnect components for artificial intelligence data centers.
What it means
Semtech will invest to lock in specific wafer capacity at Tower’s fabs to support rising demand for AI infrastructure. The companies stated that connectivity is a primary factor limiting how far AI systems can scale, making dedicated manufacturing space critical for future growth. Semtech’s signal integrity portfolio, which includes transimpedance amplifiers, modulator drivers, and linear equalizers, relies on Tower’s SiGe process technology.
The partnership includes a joint technology roadmap addressing interconnect bandwidth speeds of 800G, 1.6T, and eventually 3.2T. Tower CEO Russell Ellwanger referenced the N+2 technology generation in connection with the expanded collaboration. Semtech recently received an Optical Component Innovation award at ECOC 2026 for its 224 Gbps per Lane TIA Family designed for linear pluggable optics.
Key facts
- Expanded multi-year agreement between Tower Semiconductor and Semtech
- Dedicated SiGe capacity secured at fabs in the U.S., Israel, and Japan
- Partnership duration: 20 years
- Target application: AI data center optical interconnects
- Roadmap bandwidth steps: 800G, 1.6T, 3.2T
- Semtech award: Optical Component Innovation (Chip/Wafer) at ECOC 2026
- Awarded technology: 224 Gbps per Lane TIA Family for Linear Pluggable Optics
Source: Tower Semiconductor and Semtech joint news release