Salience Labs and Tower Semiconductor partner to develop optical circuit switches for AI data centers, enhancing connectivity and efficiency.
Quiver AI Summary
Tower Semiconductor and Salience Labs Limited have announced a partnership to produce Photonic Integrated Circuit (PIC)-based Optical Circuit Switches (OCS) aimed at enhancing AI datacenter infrastructure. Utilizing Tower's advanced silicon photonics platforms, the collaboration seeks to improve optical connectivity by offering ultra-low latency, high-bandwidth, and energy-efficient solutions that address the growing demands of AI workloads in data centers. This development has progressed to pre-production, focusing on preparing for large-scale implementation. With the data center switch market expected to surpass $100 billion by 2030 due to AI deployment, both companies are excited about the potential of their joint technology to redefine network architectures by transitioning more connectivity to the optical domain. They will showcase their collaboration at the upcoming OFC 2026 Conference.
Potential Positives
- The partnership with Salience Labs enhances Tower Semiconductor's position in the rapidly growing AI data center market, projected to exceed $100 billion in switch spending by 2030.
- The collaboration allows Tower to leverage its advanced silicon photonics technologies to provide innovative optical circuit switches, improving performance and power efficiency for AI workloads.
- The move from development to pre-production phase indicates strong progress in delivering high-demand optical connectivity solutions, potentially leading to increased revenue opportunities for Tower.
- Attendance at OFC 2026 Conference demonstrates Tower's commitment to engaging with industry stakeholders and promoting its cutting-edge technology offerings within the AI infrastructure space.
Potential Negatives
- The partnership may raise concerns about dependency on Salience Labs for innovative optical switch technology, potentially exposing Tower Semiconductor to risks if the collaboration does not yield expected results.
- The press release includes a prominent disclaimer about forward-looking statements, indicating uncertainty regarding the future performance and success of the partnership, which may lead to investor apprehension.
- By highlighting the increasing complexity and demands in AI data-center infrastructure, the press release may inadvertently showcase the challenges Tower Semiconductor faces in keeping up with rapid technological advancements in this competitive market.
FAQ
What is the partnership between Tower Semiconductor and Salience Labs about?
The partnership involves manufacturing Photonic Integrated Circuit (PIC) based Optical Circuit Switches for AI infrastructure.
How will this collaboration benefit AI data centers?
This collaboration aims to deliver ultra-low latency, high-bandwidth, and lower-power optical connectivity to enhance AI data center performance.
What role does silicon photonics play in this technology?
Silicon photonics enables scaling of optical connectivity, reducing electrical bottlenecks and improving bandwidth and latency for AI workloads.
When and where will both companies showcase their technologies?
They will showcase their technologies at the OFC 2026 Conference in Los Angeles from March 17–19.
What is the expected market impact of AI data center switches by 2030?
Data center switch spending in AI back-end networks is projected to exceed $100 billion due to growing deployments.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
Salience Lab’s Innovative Architecture leverages Tower’s differentiated Silicon Photonics platforms to deliver ultra-low latency, high-bandwidth and lower-power optical connectivity for AI clusters
MIGDAL HAEMEK, Israel, and OXFORD, England, February 25, 2026 — Tower Semiconductor , the leading foundry of high-value analog semiconductor solutions, and Salience Labs Limited , a leader in photonic solutions targeting connectivity for AI datacenter infrastructure, today announced a partnership to manufacture Photonic Integrated Circuit (PIC) based Optical Circuit Switches (OCS) for AI infrastructure. The collaboration leverages Tower’s high-volume silicon photonics platforms, namely, PH18DA with integrated III-V lasers and TPS45PH, with low loss nitride waveguides. The partnership moves from development into pre-production phase, driving product readiness and at-scale deployment for AI data-center deployment.
AI workloads are driving unprecedented growth in data-center scale and network complexity, increasing the need for higher bandwidth, lower network latency and lower energy per bit across optical interconnects. OCS architecture provides an ideal alternative to the current OEO conversion-based Electronic Packet Switching (EPS) architecture by moving more connectivity and switching into the optical domain and minimizing electrical bottlenecks. According to Dell’Oro Group , data center switch spending in AI back-end networks will exceed $100 billion by 2030 due to a rise in deployments across scale-up, scale-out and scale across domains.
“Tower is a key partner for Salience Labs, supporting our roadmap with its silicon photonics and switching technology platforms,” said Vaysh Kewada, Founder, CEO and Director, Salience Labs . “Our collaboration builds on our deep expertise in silicon photonics and specialty platforms, strengthening our ability to deliver optical switch technology optimized for the performance and power demands of AI data centers.”
“Silicon photonics with integrated light sources is a key enabler for scaling next-generation optical connectivity, and our collaboration with Salience Labs reinforces our strong momentum in AI and data-center infrastructure,” said Dr. Ed Preisler, Vice President and General Manager of RF Business Unit, Tower Semiconductor . “Salience Labs brings a compelling OCS approach for AI infrastructure, and we’re excited to support its scaling. Leveraging the ability to combine our silicon photonics and specialty process platforms, enables customers to industrialize silicon photonics-based switching architectures, while securing a path from development phase to volume manufacturing.”
Both companies will be attending the upcoming OFC 2026 Conference in Los Angeles, March 17–19 , with representatives available for meetings during the event. For more information about Salience Labs, visit booth #5232 and its website: here .
To learn more about Tower Semiconductor’s advanced silicon photonics (SiPho) platform and RF & HPA technology offerings, visit booth #2221 . Additional information is also available on the Company’s website: here .
About Tower Semiconductor
Tower Semiconductor Ltd. (NASDAQ/TASE: TSEM), the leading foundry of high-value analog semiconductor solutions, provides technology, development, and process platforms for its customers in growing markets such as consumer, industrial, automotive, mobile, infrastructure, medical and aerospace and defense. Tower Semiconductor focuses on creating a positive and sustainable impact on the world through long-term partnerships and its advanced and innovative analog technology offering, comprised of a broad range of customizable process platforms such as SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, displays, integrated power management (BCD and 700V), photonics, and MEMS. Tower Semiconductor also provides world-class design enablement for a quick and accurate design cycle as well as process transfer services including development, transfer, and optimization, to IDMs and fabless companies. To provide multi-fab sourcing and extended capacity for its customers, Tower Semiconductor owns one operating facility in Israel (200mm), two in the U.S. (200mm), two in Japan (200mm and 300mm) which it owns through its 51% holdings in TPSCo, and shares a 300mm facility in Agrate, Italy with STMicroelectronics. For more information, please visit:
www.towersemi.com
.
Safe Harbor Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements. A complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this press release or which may otherwise affect Tower’s business is included under the heading “Risk Factors” in Tower’s most recent filings on Forms 20-F, F-3, F-4 and 6-K, as were filed with the Securities and Exchange Commission (the “SEC”) and the Israel Securities Authority. Tower does not intend to update, and expressly disclaim any obligation to update, the information contained in this release.
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Tower Semiconductor Company Contact:
Orit Shahar | +972-74-7377440 |
[email protected]
Tower Semiconductor Investor Relations Contact:
Liat Avraham | +972-4-6506154 |
[email protected]
About Salience Labs
Salience Labs Limited is a leader in photonic solutions targeting connectivity for AI datacenter infrastructure. Founded in 2021 and backed by over a decade of research from the University of Oxford in the UK and University of Münster in Germany, Salience’s innovative developments in photonic switching technology enable high-speed, ultra-low latency networking fabrics that remove infrastructure bottlenecks for AI workloads. Learn more at
www.saliencelabs.ai
Salience Labs Media Contact
Kathryn Ghita | Wireside Communications for Salience Lab | [email protected]
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