NewPhotonics® and Tower Semiconductor Begin High-Volume Shipments of Laser-Integrated, Serviceable Optical Engine PICs for Scale-Out and Scale Up AI Interconnect

Tower Semiconductor (TSEM) and NewPhotonics have begun high-volume shipments of laser-integrated, serviceable optical engine photonic integrated circuits (PICs) for AI data-center interconnects.

Rhea-AI Summary

Tower Semiconductor (TSEM) and NewPhotonics have begun high-volume shipments of laser-integrated, serviceable optical engine photonic integrated circuits (PICs) for AI data-center interconnects.

The volume-production NPG102 PICs support data rates from 800G to 1.6T, using 200G-per-lane designs and heterogeneously integrated lasers on Tower’s PH18DA silicon photonics platform. The devices target FRO/LRO/LPO and Extra-Dense Packaged Optics pluggable modules and Near-Packaged Optics socket pluggable solutions for scale-out and scale-up AI architectures. CPX-MSA compliant NPC505 chipsets for 6.4T NPO applications are planned to enter volume shipment in the first half of 2027.

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+5.98% vs previous close $214.30 last price 2.2x rel. volume Open Argus

Details

Market Reaction – TSEM

$208.07 $215.96 Day Range

$24.22B Market Cap

Following this news, TSEM has gained 5.98%, reflecting a notable positive market reaction. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $214.30. Trading volume is elevated at 2.2x the average, suggesting notable buying interest.

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Market Context

The -1.18% reaction on Aug 11 to Tower’s PH18DA ecosystem announcement contrasted with this release’...

Analysis

The -1.18% reaction on Aug 11 to Tower’s PH18DA ecosystem announcement contrasted with this release’s reported high-volume shipments, marking progression from platform design enablement toward production availability.

Key Figures

Shipping data rates: 800G to 1.6T Planned data rate: 6.4T Per-lane design: 200G per lane +1 more

Shipping data rates

800G to 1.6T

Volume-production PICs

Planned data rate

6.4T

Future NPO volume manufacturing

Per-lane design

200G per lane

NPG102 PIC products

NPC505 shipment timing

1H27

CPX-MSA compliant 6.4T chipsets

Historical Context

1 past event · Latest: Aug 11

1 event

1. Aug 11

   PH18DA ecosystem expansion

   24h Move

   -1.2%

   PH18DA photonic design kit became available in Cadence tools for production development.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

silicon photonics, photonic integrated circuit, semiconductor optical amplifiers

3 terms

silicon photonics technical

"PH18DA silicon photonics (SiPho) technology platform"

Silicon photonics is the technology that uses tiny structures etched into silicon chips to generate, control and detect light for moving data and sensing, essentially putting optical fiber functions onto a computer chip. For investors, it matters because it can dramatically increase data speed and energy efficiency in data centers, telecom networks and advanced sensors, potentially lowering costs and enabling new products much like replacing many metal wires with faster, low-power optical highways.

photonic integrated circuit technical

"on a single photonic integrated circuit"

A photonic integrated circuit is a tiny chip that routes and processes light signals instead of electrical currents, like an electronic microchip but built to use photons. It matters to investors because these chips can make data transmission and sensing much faster, more energy-efficient and cheaper at scale, potentially enabling new high-growth products and cutting operating costs across communications, computing and sensing industries.

semiconductor optical amplifiers technical

"semiconductor optical amplifiers (SOAs), modulators"

Semiconductor optical amplifiers are laser-like electronic devices that boost the strength of light signals traveling through fiber-optic networks by using semiconductor materials to amplify photons without converting them back to electrical signals. They matter to investors because they are key components in telecom, data center, and sensing equipment supply chains; their performance, cost and availability affect makers of network hardware and the revenues of companies that supply or use high-capacity optical links.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Companies commercialize scale manufacturability of 800G to 1.6T PICs in external pluggable and CPX MSA compliant NPO socket pluggable solutions built on PH18DA platform designed for high-density monolithic laser integration, SOAs, modulators and detectors

MIGDAL HAEMEK, Israel, and TEL AVIV, Israel, September 17, 2026 – Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry for high-value analog semiconductor solutions, and NewPhotonics®, a fabless semiconductor delivering innovative photonic IC chip solutions, today announced high-volume shipment of laser-integrated serviceable optical engines designed to meet the urgent and growing demand for high-bandwidth, energy-efficient optical interconnects in artificial intelligence infrastructure.

The PIC optical engine chips support OEM solutions ranging from FRO/LRO/LPO and Extra-Dense Packaged Optics (XPO) pluggable transceiver modules and Near-Packaged Optics (NPO) socket pluggable applications. Shipping volume production PICs today support data rates from 800G to 1.6T, with future volume manufacturing planned at 6.4T NPO solutions suitable for scale-out and scale-up architectures.

The collaboration leverages the high-volume PH18DA silicon photonics (SiPho) technology platform featuring heterogeneously integrated InP components enabling monolithic integration of lasers, semiconductor optical amplifiers (SOAs), modulators, and photodetectors on a single photonic integrated circuit. This highly integrated, optical-domain focused approach reduces complexity and manufacturing variability to supply better yield, reliability, and time-to-market with a leading-edge photonic device.

Volume shipment of NewPhotonics NPG102 PIC products for 800G and 1.6T feature 200G-per-lane designs and heterogeneously integrated lasers on a monolithic PIC enable customers to leverage optical signal processing in a unified architecture that delivers power efficiency, bandwidth density, and manufacturing consistency. The CPX-MSA compliant NPC505 chipsets for 6.4T will begin volume shipment in 1H27.

“The next phase of AI infrastructure demands optical connectivity that scales in both production and performance,” said Doron Tal, SVP and GM of NewPhotonics. “With Tower, we are translating laser-integrated photonics into a practical choice and volume availability. By combining our optical chip design with their manufacturing platform, we are first to bring higher-bandwidth, energy-efficient highly integrated systems to the OEM customer and data center market.”

“We are excited to see our vision of integrating lasers with high-performance photonic integrated circuits come to fruition through scale-ready solutions optimized for FRO/LRO and NPO architectures,” said Dr. Ed Preisler, Vice President and General Manager, RF Business Unit, Tower Semiconductor. “NewPhotonics is a valued partner and the first to bring heterogenous laser-integrated optical engines on the PH18DA platform into high-volume production, marking an important milestone in scaling optical connectivity for next-generation AI infrastructure.”

Both companies will participate in the upcoming ECOC 2026, September 21–23 at FYCMA in Malaga, Spain, with representatives available for meetings during the event.

To learn more about Tower Semiconductor’s advanced silicon photonics (SiPho) platform and RF & HPA technology offerings, visit booth #C1014. Additional information is also available on the Company’s website: here.

NewPhotonics will showcase the NPG102 and NPC505 PIC products in Pavilion 2 stand #2009. Additional information about the company as well as scheduling for ECOC meetings and demo sessions can be accessed at the company’s ECOC event page

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 SiPho, SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, displays, and integrated power management (BCD and 700V). 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 currently owns one operating facility in Israel (200mm), two in the U.S. (200mm), and 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.

About NewPhotonics

NewPhotonics is a fabless semiconductor delivering innovative optical-first silicon photonic product and technology innovation for AI-era hyperscaler, neo-cloud and data center interconnect that enables market disrupting energy efficiency and production simplicity and volume of FRO/LRO/LPO and NPO pluggables as well as advanced co-packaged optics solutions. In a highly integrated and system approach to design, the company offers laser integrated PICs for scale-out and scale-up photonic interconnect, the OSPic^® all-optical signal processor engine, and the industry-first Syncra^™ powered by Niox^™ heaterless MRM CPO platform with zero-loss monitoring and real-time calibration. Visit www.newphotonics to learn more.
                                                
Tower Semiconductor Company Contact: Orit Shahar | +972-74-7377440 | oritsha@towersemi.com
Tower Semiconductor Investor Relations Contact: Liat Avraham | +972-4-6506154 | liatavra@towersemi.com

NewPhotonics Press Contact:
press.relations@newphotonics.com +972 3 614-3147  

Attachment

• Tower_NewPhotonics_NPO_PR_FINAL_09172026.docx

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What technology platform underpins the new NewPhotonics optical engine PICs?

The optical engine PICs are built on Tower Semiconductor’s PH18DA silicon photonics (SiPho) platform, which features heterogeneously integrated InP components that enable monolithic integration of lasers, semiconductor optical amplifiers (SOAs), modulators, and photodetectors on a single photonic integrated circuit.

Which applications and module types are targeted by these PIC-based optical engines?

The PIC optical engines support OEM solutions ranging from FRO/LRO/LPO and Extra-Dense Packaged Optics (XPO) pluggable transceiver modules to Near-Packaged Optics (NPO) socket pluggable applications, addressing scale-out and scale-up AI infrastructure architectures.

What are the current and planned data rates supported by NewPhotonics products?

NewPhotonics is shipping volume production NPG102 PIC products that support data rates from 800G to 1.6T with 200G-per-lane designs. The CPX-MSA compliant NPC505 chipsets for 6.4T NPO solutions are expected to begin volume shipment in the first half of 2027.

How do Tower and NewPhotonics describe the benefits of this laser-integrated approach?

The companies state that monolithic laser integration and an optical-domain focused approach are intended to reduce complexity and manufacturing variability, supporting improved yield, reliability, time-to-market, power efficiency, bandwidth density, and manufacturing consistency for AI optical connectivity.

Where will Tower Semiconductor and NewPhotonics present these solutions at ECOC 2026?

At ECOC 2026 in Malaga, Spain, Tower Semiconductor will be at booth #C1014, showcasing its silicon photonics and RF & HPA technologies. NewPhotonics will present the NPG102 and NPC505 PIC products in Pavilion 2, stand #2009, and provides additional details and scheduling for meetings and demo sessions on its ECOC event page.