Semtech secures dedicated SiGe capacity at Tower

The two companies have worked together for 20 years. Semtech’s signal integrity products, including transimpedance amplifiers (TIAs), modulator and laser drivers and linear equalisers, are built on Tower’s SiGe process technology, according to a press release from the companies. They are used in optical transceivers and active copper cables, both for links within a rack and across a data centre.

“Our customers are scaling interconnect bandwidth quickly and at massive scale. Meeting that demand requires long-term capacity planning and commitment with our manufacturing partners,” says Hong Hou, President and CEO of Semtech.

Behind the agreement is a shift in how AI data centres use their power. A growing share of it goes to moving data rather than processing it. With each step up in speed, from 800G to 1.6T and on to 3.2T, the requirements for bandwidth, reach and power per bit increase. That makes the analog front end that drives and receives the signal more important.

According to the companies, spreading the capacity across three regions gives Semtech better supply security and geographic diversification. The agreement builds on current production and comes as Semtech expects demand for its SiGe-based products to grow across more customer programmes and end markets. Tower and Semtech also work together on a joint technology roadmap for future interconnect generations.

“By qualifying these solutions well ahead of market need, we both stand fully prepared for immediate implementation as the market moves into these generations,” says Russell Ellwanger, CEO of Tower Semiconductor.

The companies have not disclosed the size of Semtech’s investment or how much capacity it secures.