Tower Semiconductor and Xscape Photonics jointly announced on August 25, 2025, the successful prototyping and validation of an on-chip, optically pumped, multi-wavelength laser source, built on Tower’s PH18 Silicon Photonics platform, intended for AI datacenter fabrics. The solution, leveraging Xscape Photonics’ ChromX platform and CombX technology, aims to simplify design and reduce component count for GPU-to-GPU and GPU-to-HBM optical links, eliminating the need for hybrid laser integration, according to Vivek Raghunathan, CEO of Xscape Photonics, and Ed Preisler, Vice President and GM of Tower Semiconductors RF Business Unit. LightCounting projects sales of optical transceivers and LPO/CPO for AI clusters to reach over $10 billion in 2026 and $20 billion by 2030.
New Laser Platform for AI Data Centers
Tower Semiconductor (NASDAQ/TASE: TSEM) and Xscape Photonics have successfully prototyped and validated what is claimed to be the industry’s first on-chip, optically pumped, multi-wavelength laser source. The solution is built on Tower Semiconductor’s PH18 Silicon Photonics platform and supports both CWDM and DWDM wavelength grids, specifically tailored for AI datacenter fabrics where bandwidth density, power efficiency, and scalability are critical.
This development enables a pathway towards high performance, high reliability, and lower costs by monolithically embedding programmable multi-color lasers on-chip, optically pumped by a single CW external laser, eliminating the need for multiple externally modulated lasers or hybrid III-V integration. Xscape Photonics’ solution simplifies design, reduces latency and component count, and is particularly impactful for GPU-to-GPU and GPU-to-HBM optical links within AI clusters. Leveraging Tower’s PH18 platform, the solution provides a seamless upgrade path for existing customers and is fully compatible with established photonic components like modulators and detectors.
Xscape Photonics is developing a multi-color laser platform, ChromX, based on its proprietary CombX technology, a programmable laser source device designed to allow end users, particularly those utilizing Tower’s PH18 platform, to easily integrate high-performance laser sources. This integration significantly reduces packaging complexity and component count. The laser source is compatible with existing silicon photonic modulators and detectors, facilitating a path towards fully integrated optical interconnects for AI data center fabrics.
According to LightCounting, sales of optical transceivers and LPO/CPO for AI clusters are projected to exceed $10 billion in 2026, doubling the sales volume from 2024, and are anticipated to reach $20 billion by 2030. The companies state that this new solution exemplifies how Tower’s flexible, modular technology ecosystem enables rapid prototyping and high-volume production adoption for emerging AI and data-driven markets.
Advancing Optical Interconnect Technology
Vivek Raghunathan, CEO of Xscape Photonics, stated that by building on Tower’s proven PH18 platform, the companies have eliminated the need for costly hybrid laser integration and delivered the first monolithically integrated, multi-color laser source directly on-chip, which will transform how AI fabrics are architected going forward. Ed Preisler, Vice President and GM of Tower Semiconductors RF Business Unit, stated that Tower’s multi-sourced and high-volume silicon photonics platform has once again demonstrated its ability to support advanced custom solutions for AI and datacenter customers at scale.
Key Collaboration and Manufacturing Details
The collaborative effort between Xscape Photonics and Tower Semiconductor has resulted in the prototyping and validation kit availability of what the companies claim is the industry’s first on-chip, optically pumped, multi-wavelength laser source. This solution, built on Tower Semiconductor’s PH18 Silicon Photonics platform, supports both CWDM and DWDM wavelength grids and is tailored for AI datacenter fabrics, prioritizing bandwidth density, power efficiency, and scalability.
Xscape Photonics’ ChromX platform leverages its proprietary CombX technology, a programmable laser source device intended to simplify the integration of high-performance laser sources for users of Tower’s PH18 platform. The companies state this design reduces packaging complexity and component count, while maintaining compatibility with existing silicon photonic modulators and detectors, to enable fully integrated optical interconnects for AI data center fabrics.
LightCounting projects sales of optical transceivers and LPO/CPO for AI clusters to surpass $10 billion in 2026, representing a doubling of sales from 2024, and to reach $20 billion by 2030. Tower Semiconductor asserts that this new solution demonstrates the capabilities of its flexible, modular technology ecosystem in enabling rapid prototyping and high-volume production for emerging AI and data-driven markets.
Company Overviews and Forward-Looking Statements
Vivek Raghunathan, CEO of Xscape Photonics, stated that the collaboration with Tower Semiconductor has enabled a highly differentiated, manufacturable, and scalable solution. He further noted that by building on Tower’s PH18 platform, the need for costly hybrid laser integration has been eliminated, delivering the first monolithically integrated, multi-color laser source directly on-chip, which will transform how AI fabrics are architected going forward.
Ed Preisler, Vice President and GM of Tower Semiconductors RF Business Unit, stated that Tower’s multi-sourced and high-volume silicon photonics platform has demonstrated its ability to support advanced custom solutions for AI and datacenter customers at scale. He further explained that this new solution exemplifies how the company’s flexible, modular technology ecosystem enables rapid prototyping and high-volume production adoption for emerging AI and data-driven markets.
Tower Semiconductor owns one operating facility in Israel (200mm), two in the U.S. (200mm), two in Japan (200mm and 300mm) through its 51% holdings in TPSCo, shares a 300mm facility in Agrate, Italy with STMicroelectronics, and has access to a 300mm capacity corridor in Intel’s New Mexico factory, to provide multi-fab sourcing and extended capacity for its customers.
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