Semtech secures dedicated SiGe capacity at Tower for AI interconnects

Tower Semiconductor and Semtech announced on October 13, 2026 an expanded multi-year agreement under which Semtech will invest in dedicated silicon germanium (SiGe) capacity at Tower's fabs in the US, Israel and Japan. The capacity will support optical and copper interconnect components for AI data centers as speeds scale from 800G to 1.6T and 3.2T.

• Semtech gets dedicated SiGe capacity across Tower fabs in the US, Israel and Japan
• The deal expands a 20-year partnership between the two companies
• Components target 800G to 3.2T speeds for AI data center interconnects
• Cignal AI projects datacom optics demand to reach $37B in 2026, up from $9B in 2024