Semtech secures dedicated SiGe capacity at Tower

What happened

Semtech will invest in dedicated silicon germanium (SiGe) capacity at Tower Semiconductor under an expanded multi-year agreement. The capacity spans Tower's fabs in the US, Israel and Japan and will support Semtech's growing business in optical and copper interconnect components for AI data centres. 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 and are used in optical transceivers and active copper cables. 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. The companies also work together on a joint technology roadmap for future interconnect generations. The companies have not disclosed the size of Semtech's investment or how much capacity it secures.

Impact and signal

Affected components and suppliers

Source and time

Source: Evertiq · 10/22/2026 · View original source