Tower Semiconductor and Xscape Photonics Launch Industry's First Monolithically Integrated Multi-Color Laser Source for AI Data Center Applications

Tower Semiconductor and Xscape Photonics unveil a programmable multi-color laser for AI datacenters, enhancing optical interconnect solutions.

Quiver AI Summary

Tower Semiconductor and Xscape Photonics have announced the successful prototyping of the first on-chip, optically pumped, multi-wavelength laser source designed for AI datacenter applications. Built on Tower's PH18 Silicon Photonics platform, this innovative laser supports CWDM and DWDM wavelength grids, enhancing bandwidth density and power efficiency for AI deployments, which are projected to see significant growth in demand for optical interconnects. The solution simplifies design and reduces the need for multiple external lasers, enabling a streamlined supply chain and lower costs. Xscape’s ChromX platform allows easy integration of these high-performance laser sources, providing a seamless upgrade path for existing users. This partnership signifies a leap forward in the development of scalable solutions for high-speed optical connections necessary for advanced AI systems.

Potential Positives

Introduction of the world's first on-chip optically pumped multi-wavelength laser source, which positions Tower Semiconductor as a leader in innovative laser technology for AI datacenter applications.
Partnership with Xscape Photonics enhances Tower's capabilities in photonic interconnects, strengthening its market position amidst growing demand for optical solutions in AI environments.
The new laser technology supports scalable CWDM and DWDM wavelength grids, aligning with industry trends and anticipated growth in the optical interconnect market projected to reach over $20 billion by 2030.
The solution simplifies design and reduces system complexity, likely leading to increased adoption by existing customers using Tower's PH18 platform, which is critical for maintaining competitive advantage.

Potential Negatives

The press release focuses heavily on a partnership with Xscape Photonics, which may imply that Tower Semiconductor is reliant on external collaborations for innovative developments rather than showcasing independent advancements.
The mention of forward-looking statements includes a warning of risks and uncertainties, which could cast doubt on the projected success of the new technology.
Potential customers or investors may see the need for external evaluation kits and proprietary technology as barriers to immediate adoption of the new multi-color laser source, possibly delaying market penetration.

FAQ

What is the new laser technology announced by Tower Semiconductor and Xscape Photonics?

The companies announced a programmable multi-color laser source built on Tower's PH18 Silicon Photonics platform for AI data centers.

How does the new laser solution improve AI data center connectivity?

This laser source supports CWDM and DWDM grids, enhancing bandwidth density, power efficiency, and scalability in AI clusters.

What advantages does the monolithic integration of lasers offer?

It reduces costs, simplifies supply chains, and eliminates the need for multiple external modulated lasers, improving design and performance.

What is the projected growth of the optical interconnect market for AI?

The market is expected to grow to over $20 billion by 2030, driven by demand for high-speed connectivity in AI deployments.

How can existing customers benefit from the new laser source?

The solution offers a seamless upgrade path and is compatible with established photonic components, simplifying integration.

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

Monolithically integrated, optically pumped, programmable multi-color laser built on Tower’s PH18 platform enables scalable CWDM/DWDM optical fabrics for disaggregated AI clusters

MIGDAL HAEMEK, Israel and SANTA CLARA, Calif. – Aug. 25, 2025 - Tower Semiconductor (NASDAQ/TASE: TSEM), a leading foundry of high-value analog semiconductor solutions, and Xs ca pe Photonics , a U.S.-based innovator in advanced photonic interconnects funded by industry leaders such as NVIDIA and Cisco, today announced the successful prototyping and validation kit availability of the industry’s first on-chip, optically pumped, multi-wavelength laser source. Built on Tower’s mature, high-volume PH18 Silicon Photonics platform , the solution supports CWDM and DWDM wavelength grids and is tailored for AI datacenter fabrics, where bandwidth density, power efficiency, and scalability are essential.

The optical interconnect market for AI datacenters is expected to grow, driven by the rising demand for high-speed, low-latency connectivity in hyperscale AI deployments. According to LightCounting , sales of optical transceivers and LPO/CPO for AI clusters are expected to reach more than $10 billion in 2026, double the size of sales in 2024. LightCounting projects these sales to reach $20 billion by 2030.

This breakthrough from Tower Semiconductor and Xscape Photonics enables a path toward high performance, high reliability, lower cost and a simplified supply chain by monolithically embedding programmable multi-color lasers on-chip, pumped optically by a single CW external laser. It also eliminates the need to source for multiple externally modulated lasers or require hybrid III-V integration. Xscape Photonics’ solution simplifies design, reduces latency and component count, and is especially impactful for GPU-to-GPU and GPU-to-HBM optical links in AI clusters. Leveraging Tower’s high-volume modular PH18 platform, the solution offers a seamless upgrade path for existing customers, fully compatible with established photonic components such as modulators and detectors.

“Our close collaboration with Tower has allowed us to bring to market a highly differentiated, manufacturable, and scalable solution,” said Vivek Raghunathan, CEO of Xscape Photonics. “By building on Tower’s proven and qualified high-volume PH18 platform, we’ve eliminated the need for costly hybrid laser integration and delivered the first monolithically integrated, multi-color laser source directly on-chip. This will transform how AI fabrics are architected going forward.”

Xscape Photonics is developing a multi-color laser platform, ChromX , based on its proprietary CombX technology, a programmable laser source device that allows end users—especially those already designing with Tower’s PH18 platform—to easily integrate high-performance laser sources, significantly reducing packaging complexity and component count. The laser source is compatible with existing silicon photonic modulators and detectors, opening a seamless path toward fully integrated optical interconnect for AI data center fabrics.

“We are excited to partner with Xscape Photonics in bringing this first-of-its-kind innovation to life,” said Ed Preisler, Vice President and GM of Tower Semiconductor’s RF Business Unit . “Tower’s multi-sourced and high-volume silicon photonics platform has once again demonstrated its ability to support advanced custom solutions for AI and datacenter customers at scale. This new solution exemplifies how our flexible, modular technology ecosystem enables rapid prototyping and high-volume production adoption for emerging AI and data-driven markets.”

For additional information about the company’s RF platform offering, visit 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, shares a 300mm facility in Agrate, Italy with STMicroelectronics as well as has access to a 300mm capacity corridor in Intel’s New Mexico factory. 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.

About Xscape Photonics
Xscape Photonics develops custom photonic platform solutions designed for ultra-high bandwidth connections inside data centers to power Agentic AI systems. The company's proprietary ChromX platform targets scaling of AI computing performance in an environmentally sustainable manner and is optimized for power, cost, scale and reliability. The company recently announced the availability of EagleX, its technology evaluation kit . To learn more, follow us on LinkedIn or visit xscapephotonics.com.

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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]

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