Semtech and Tower Semiconductor broadened their 20-year manufacturing partnership with a new multi-year agreement. The deal ensures Semtech receives dedicated production capacity for its silicon germanium (SiGe) based products. These products are crucial for high-speed connectivity in AI data centers. The agreement addresses growing demand for Semtech's components in optical and copper interconnects.
The expanded agreement provides Semtech with supply assurance from Tower's fabrication plants. These plants are located in the United States, Israel, and Japan. This adds geographic diversity to Semtech's supply chain. The collaboration will support the development and production of components for next-generation data center technologies. These include 800G, 1.6T, and 3.2T speeds. Semtech will invest in securing this dedicated capacity to support its growth in the AI infrastructure market.