Tower Semiconductor Achieves Photonics Milestone for AI Data Centers

Tower Semiconductor Ltd. (NASDAQ:TSEM) announced on June 18, 2026 that it has shipped more than five million coherent photonic integrated circuits (PICs) to global customers of its partner Marvell Technology (NASDAQ:MRVL). These chips are used in coherent optical transceivers that power AI data centers, marking a significant milestone in optical connectivity technology.

The Product

Photonic integrated circuits (PICs) are a key technology for enabling high-speed, reliable connectivity in data centers. These chips allow data transmission at ultra-fast speeds with low power consumption, critical for AI applications that process massive datasets.

Pricing and Availability

Tower Semiconductor did not disclose pricing details or delivery timelines, but the shipment of over 5 million units indicates strong customer demand.

Competition

Tower faces competition from companies like Intel (INTC) and GlobalFoundries (GFS) in silicon photonics. However, its partnership with Marvell gives it a competitive edge in the data center market.

Potential Impact on the Company

This milestone is expected to strengthen Tower's position in the photonic semiconductor market, especially as demand for AI infrastructure grows. It may also boost revenue from manufacturing contracts with Marvell and other clients.