Salience Labs and Tower Semiconductor Partner to Manufacture At-Scale Optical Circuit Switches for Next-Generation Data Centers
MWN-AI** Summary
Salience Labs Limited, a leader in photonic solutions for AI data centers, has partnered with Tower Semiconductor to manufacture Optical Circuit Switches (OCS) based on Photonic Integrated Circuits (PIC). This collaboration signifies a transition from developmental stages into pre-production, focusing on delivering high-bandwidth, low-latency optical connectivity while reducing energy consumption in AI clusters. Leveraging Tower’s advanced silicon photonics platforms, including the PH18DA with integrated III-V lasers and TPS45PH featuring low-loss nitride waveguides, the partnership aims to address the growing demand for enhanced connectivity in an increasingly complex data center environment.
The necessity for higher bandwidth and minimal network latency is driven by the rampant growth of AI workloads, which is expected to see data center switch spending reach over $100 billion by 2030, as predicted by the Dell’Oro Group. OCS technology is positioned as a superior alternative to traditional electronic packet switching, facilitating more extensive optical domain connectivity and reducing electrical bottlenecks.
Vaysh Kewada, Founder and CEO of Salience Labs, emphasized that Tower Semiconductor’s role is crucial in supporting their technological roadmap, thereby enhancing their capacity to deliver optimized optical switch solutions tailored for AI infrastructure. Dr. Ed Preisler from Tower Semiconductor expressed excitement about the collaboration, noting that the integration of silicon photonics technology is vital for next-generation optical connectivity and the industrialization of silicon photonics-based switching architectures.
Both companies plan to showcase their innovations at the upcoming OFC 2026 Conference in Los Angeles. This partnership not only marks a significant advance in optical connectivity for data centers but also exemplifies ongoing efforts to meet the demands of the burgeoning AI sector while maintaining performance and energy efficiency.
MWN-AI** Analysis
Salience Labs and Tower Semiconductor's recent partnership marks a significant advancement in optical circuit switching (OCS) technology for AI data centers. This collaboration leverages Tower's silicon photonics platforms to produce photonic integrated circuits that promise ultra-low latency and high bandwidth—essential for AI workloads. Given the projected surge in demand for data center infrastructure, with the Dell’Oro Group estimating spending will surpass $100 billion by 2030, this partnership positions both companies strategically within a rapidly growing market.
Investors should consider the implications of this partnership in several key areas. Firstly, the shift from traditional electronic packet switching to OCS architecture addresses critical needs in network efficiency and energy consumption. As data centers scale, the transition to optical connectivity is increasingly viewed as essential. This positions Salience Labs to capitalize on changing infrastructure needs, potentially driving revenue growth and improving market share.
Secondly, Tower Semiconductor's role as a foundry leader in analog semiconductor solutions enhances Salience’s product development. By tapping into Tower's established manufacturing capabilities, Salience could accelerate the timeline from product development to market readiness, minimizing the risks often associated with scaling new technologies.
The partnership also signifies a potential competitive edge against other semiconductor firms and photonics developers yet to tap into the high-volume OCS market. Therefore, it may be prudent for investors to keep an eye on both companies as they progress towards mass production and explore broader applications of their technology, which could also serve related sectors like telecommunications and cloud computing.
Consequently, this partnership offers promising growth opportunities, making Salience Labs and Tower Semiconductor attractive options for investors looking to capitalize on advancements in AI data infrastructure.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Salience Lab’s Innovative Architecture leverages Tower’s differentiated Silicon Photonics platforms to deliver ultra-low latency, high-bandwidth and lower-power optical connectivity for AI clusters
MIGDAL HAEMEK, Israel, and OXFORD, England, February 25, 2026 — Tower Semiconductor, the leading foundry of high-value analog semiconductor solutions, and Salience Labs Limited, a leader in photonic solutions targeting connectivity for AI datacenter infrastructure, today announced a partnership to manufacture Photonic Integrated Circuit (PIC) based Optical Circuit Switches (OCS) for AI infrastructure. The collaboration leverages Tower’s high-volume silicon photonics platforms, namely, PH18DA with integrated III-V lasers and TPS45PH, with low loss nitride waveguides. The partnership moves from development into pre-production phase, driving product readiness and at-scale deployment for AI data-center deployment.
AI workloads are driving unprecedented growth in data-center scale and network complexity, increasing the need for higher bandwidth, lower network latency and lower energy per bit across optical interconnects. OCS architecture provides an ideal alternative to the current OEO conversion-based Electronic Packet Switching (EPS) architecture by moving more connectivity and switching into the optical domain and minimizing electrical bottlenecks. According to Dell’Oro Group, data center switch spending in AI back-end networks will exceed $100 billion by 2030 due to a rise in deployments across scale-up, scale-out and scale across domains.
“Tower is a key partner for Salience Labs, supporting our roadmap with its silicon photonics and switching technology platforms,” said Vaysh Kewada, Founder, CEO and Director, Salience Labs. “Our collaboration builds on our deep expertise in silicon photonics and specialty platforms, strengthening our ability to deliver optical switch technology optimized for the performance and power demands of AI data centers.”
“Silicon photonics with integrated light sources is a key enabler for scaling next-generation optical connectivity, and our collaboration with Salience Labs reinforces our strong momentum in AI and data-center infrastructure,” said Dr. Ed Preisler, Vice President and General Manager of RF Business Unit, Tower Semiconductor. “Salience Labs brings a compelling OCS approach for AI infrastructure, and we’re excited to support its scaling. Leveraging the ability to combine our silicon photonics and specialty process platforms, enables customers to industrialize silicon photonics-based switching architectures, while securing a path from development phase to volume manufacturing.”
Both companies will be attending the upcoming OFC 2026 Conference in Los Angeles, March 17–19, with representatives available for meetings during the event. For more information about Salience Labs, visit booth #5232 and its website: here.
To learn more about Tower Semiconductor’s advanced silicon photonics (SiPho) platform and RF & HPA technology offerings, visit booth #2221. Additional information is also available on the Company’s website: here.
About Tower Semiconductor
Tower Semiconductor Ltd. (NASDAQ/TASE: TSEM), the leading foundry of high-value analog semiconductor solutions, provides technology, development, and process platforms for its customers in growing markets such as consumer, industrial, automotive, mobile, infrastructure, medical and aerospace and defense. Tower Semiconductor focuses on creating a positive and sustainable impact on the world through long-term partnerships and its advanced and innovative analog technology offering, comprised of a broad range of customizable process platforms such as SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, displays, integrated power management (BCD and 700V), photonics, and MEMS. Tower Semiconductor also provides world-class design enablement for a quick and accurate design cycle as well as process transfer services including development, transfer, and optimization, to IDMs and fabless companies. To provide multi-fab sourcing and extended capacity for its customers, Tower Semiconductor owns one operating facility in Israel (200mm), two in the U.S. (200mm), two in Japan (200mm and 300mm) which it owns through its 51% holdings in TPSCo, and shares a 300mm facility in Agrate, Italy with STMicroelectronics. For more information, please visit: www.towersemi.com.
Safe Harbor Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements. A complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this press release or which may otherwise affect Tower’s business is included under the heading “Risk Factors” in Tower’s most recent filings on Forms 20-F, F-3, F-4 and 6-K, as were filed with the Securities and Exchange Commission (the “SEC”) and the Israel Securities Authority. Tower does not intend to update, and expressly disclaim any obligation to update, the information contained in this release.
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Tower Semiconductor Company Contact: Orit Shahar | +972-74-7377440 | [email protected]
Tower Semiconductor Investor Relations Contact: Liat Avraham | +972-4-6506154 | [email protected]
About Salience Labs
Salience Labs Limited is a leader in photonic solutions targeting connectivity for AI datacenter infrastructure. Founded in 2021 and backed by over a decade of research from the University of Oxford in the UK and University of Münster in Germany, Salience’s innovative developments in photonic switching technology enable high-speed, ultra-low latency networking fabrics that remove infrastructure bottlenecks for AI workloads. Learn more at www.saliencelabs.ai
Salience Labs Media Contact
Kathryn Ghita | Wireside Communications for Salience Lab | [email protected]
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FAQ**
How does the partnership between Salience Labs and Tower Semiconductor Ltd. TSEM enhance the performance of optical circuit switches for AI infrastructure compared to traditional electronic packet switching?
What specific advantages do the integrated III-V lasers and low-loss nitride waveguides in Tower Semiconductor Ltd. TSEM’s platforms provide to the optical connectivity solutions being developed?
What are the potential market implications for both Salience Labs and Tower Semiconductor Ltd. TSEM given the projected $100 billion spending on data center switches in AI back-end networks by 2030?
How does the collaboration between Salience Labs and Tower Semiconductor Ltd. TSEM position both companies to capitalize on the growing demand for lower latency and higher bandwidth in AI data centers?
**MWN-AI FAQ is based on asking OpenAI questions about Tower Semiconductor Ltd. (NASDAQ: TSEM).
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