Tower Semiconductor Gains on AI Optical Chip Production Launch

The Israel-based partners designed these chips to address the surging demand for energy-efficient optical interconnects. Initial shipments currently support data rates ranging from 800G to 1.6T, with a roadmap already in place to scale capacity to 6.4T by the first half of next year.

Doron Tal, senior vice president and general manager of NewPhotonics, noted that the collaboration leverages Tower's specialized manufacturing platform to deliver highly integrated systems directly to OEM customers and data center operators. This strategic move positions both firms to capture a larger share of the infrastructure market as AI-driven compute demands continue to escalate.