Tower Semiconductor is making waves in the AI-driven demand for silicon photonics and silicon germanium technologies, doubling its photonics revenue to $100 million this year and eyeing further growth in 2025. Tower Semiconductor Ltd. is an Israeli company specializing in analog integrated circuits, with a market capitalization of approximately $4.8 billion and annual revenue of $1.4 billion as of November 2024. The Israeli foundry holds a commanding market share in datacom optical transceivers, serving industry leaders like Macom and Semtech while leveraging partnerships with OpenLight to expand its photonics portfolio. Additionally, Tower benefits from geopolitical shifts as Western companies move production away from China and Taiwan, securing partnerships like its $300M deal with Intel to utilize New Mexico’s fab for power management ICs. Despite potential competition from China’s legacy chip production, Tower’s focus on customizable, high-performance solutions and Western fab capacity positions it as a key player in the AI and data center ecosystems.
My Take
Tower Semiconductor’s focus on silicon photonics highlights a crucial trend: data centers and AI rely increasingly on power-efficient, high-speed solutions, and Tower is stepping into the role of enabler for these advancements. Its partnerships with Intel and OpenLight demonstrate the value of collaboration in scaling cutting-edge technologies, a strategy other foundries might need to emulate to stay competitive. The geopolitical implications of Tower’s growth underline a broader shift toward supply chain resilience, with companies preferring Western fabs over traditional Asian hubs—a clear opportunity for Tower. Finally, the company’s adaptability, moving beyond low-end legacy chips to carve niches in AI and photonics, is a blueprint for surviving and thriving in today’s dynamic semiconductor landscape.
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Link to article:
https://www.eetimes.com/tower-semiconductor-rides-silicon-photonics-wave/
Credit: eetimes