Tower Semiconductor secures $1.3B in silicon photonics deals for AI data centers
Tower Semiconductor, an Israeli company specializing in contract chip manufacturing, has secured $1.3 billion in agreements for silicon photonics targeting AI data centers. Additionally, the firm surpassed expectations for the first quarter and anticipates a historic $455 million in revenue for the second quarter. Utilizing light for data transmission, silicon photonics provides superior speed and reduced power usage compared to conventional electronic connections, which is essential for AI infrastructure. The contracts signed by Tower highlight the increasing need for specialized chips designed to manage AI tasks.
Key facts
- Tower Semiconductor secured $1.3 billion in silicon photonics deals.
- The deals are for AI data centers.
- Tower beat first-quarter estimates.
- The company forecast record second-quarter revenue of $455 million.
- Silicon photonics uses light for data transfer.
- The technology offers higher speed and lower power consumption.
- Tower is an Israeli contract chipmaker.
- The deals highlight demand for specialized AI chips.
Entities
Institutions
- Tower Semiconductor
Locations
- Israel
Sources
- Quartz —