Semtech Secures Dedicated SiGe Capacity at Tower for AI Interconnect

What happened

Tower Semiconductor and Semtech Corporation announced on October 13, 2026, an expanded multi-year agreement under which Semtech will invest in securing dedicated silicon germanium (SiGe) capacity at Tower, building on the companies' 20-year partnership to support optical and copper interconnects for AI data center (a building full of computers that runs online services) infrastructure. The joint announcement , datelined Migdal Haemek, Israel, and Camarillo, California, ties the capacity investment to what the companies described as strong design wins and demand for AI data center optical interconnect components.

Dedicated Capacity Across Three Regions The secured capacity spans Tower’s fabs in the United States, Israel, and Japan, and the companies said the footprint gives Semtech’s manufacturing strategy added supply resilience and geographic diversification. Tower operates as a foundry (a factory that manufactures chips designed by other companies) for high-value analog semiconductor solutions, while Semtech supplies high-performance semiconductors for AI data center networking and connected Internet of Things (everyday devices connected to a network) devices. The agreement builds on current production and gives Semtech additional supply assurance, with demand for its SiGe-based products expected to grow across a widening base of customer programs and end markets, according to the announcement.

Key facts

• Tower Semiconductor and Semtech Corporation — announced: on October 13, 2026, an expanded multi-year agreement under which Semtech will invest in securing dedicated silicon germanium (SiGe) capacity at Tower, building on the companies' 20-year partnership to support optical and copper interconnects for AI data center infrastructure