Tower Semiconductor Partners with LightIC to Expand Silicon Photonics Beyond AI Infrastructure into Physical AI and Automotive
Rhea-AI Summary
Tower Semiconductor (NASDAQ/TASE: TSEM) announced a strategic collaboration with LightIC to apply Tower’s mature silicon photonics foundry platform to LightIC’s FMCW LiDAR products, including the Lark long-range automotive LiDAR and FR60 compact LiDAR for robotics and Physical AI.
The release cites Yole Group forecasts: automotive LiDAR market to grow from $859M (2024) to $3.6B (2030) (CAGR 24%) and the broader LiDAR market to reach $6.3B by 2027. The partnership aims to improve optical integration, SWaP-C, and manufacturability for velocity-aware 4D FMCW LiDAR.
Positive
- Automotive LiDAR market projected to $3.6B by 2030 (CAGR 24%)
- Broader LiDAR market forecasted at $6.3B by 2027
- Collaboration targets higher optical integration for LiDAR
- Aims to improve size, weight, power, cost (SWaP-C)
- Uses Tower’s mature silicon photonics manufacturable platform
Negative
- None.
News Market Reaction
On the day this news was published, TSEM declined 2.01%, reflecting a moderate negative market reaction. Argus tracked a trough of -10.8% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $279M from the company's valuation, bringing the market cap to $13.62B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TSEM gained 3.68% while peers were mixed: LSCC up 4.14%, QRVO and SITM modestly positive, SMTC slightly negative. Moves do not indicate a unified sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 29 | Conference attendance | Neutral | -0.4% | Announcement of participation in Needham Growth Conference and investor meetings. |
| Dec 09 | Conference attendance | Neutral | +4.8% | Disclosure of attendance at Nomura’s CES Technology Conference with 1:1 meetings. |
| Dec 03 | Conference attendance | Neutral | -0.4% | Participation in Barclays Global Technology Conference with investor meeting access. |
| Nov 17 | AI power collaboration | Positive | -3.9% | Launch of SW2001 AI/server power regulator on Tower’s 65nm BCD platform. |
| Nov 12 | SiPho platform expansion | Positive | +6.7% | New CPO-capable 300mm wafer bonding across SiPho and SiGe BiCMOS platforms. |
News-driven moves have mostly aligned with event tone, with one notable divergence on a positive AI collaboration.
Over the last few months, TSEM has highlighted conferences, technology expansions, and AI-related collaborations. Conference attendance updates on Nov 12, Dec 3, Dec 9, and Dec 29, 2025 produced small, generally aligned price reactions. More technical announcements, such as the silicon photonics and CPO platform expansion on Nov 12, 2025, saw a stronger positive move. A prior AI power collaboration on Nov 17, 2025 drew a negative reaction, showing that not all positive technology news has been rewarded.
Market Pulse Summary
This announcement highlights TSEM’s use of its silicon photonics platform to support LightIC’s FMCW LiDAR for automotive and Physical AI, tying into LiDAR markets projected at $3.6 billion for automotive by 2030 and $6.3 billion overall by 2027. It builds on earlier SiPho and AI collaborations, extending from data-center optics into sensing. Investors may watch for follow-on customer wins, production ramp details, and additional design wins that validate scalable demand for these LiDAR-focused processes.
Key Terms
frequency-modulated continuous-wave (fmcw) lidar technical
silicon photonics technical
4d fmcw lidar technical
lidar technical
AI-generated analysis. Not financial advice.
Leveraging Tower’s Mature Silicon Photonics Foundry Platform to Enable Scalable FMCW LiDAR
MIGDAL HAEMEK, Israel, and SAN JOSE, CA. – January 05, 2026 – Tower Semiconductor (NASDAQ/TASE: TSEM), a leading foundry of high-value analog semiconductor solutions, and LightIC Technologies (“LightIC”), a developer of silicon photonics–based FMCW LiDAR solutions, today announced a strategic collaboration leveraging Tower’s mature silicon photonics platform to support LightIC’s Frequency-Modulated Continuous-Wave (FMCW) LiDAR products, including the Lark™ long-range automotive LiDAR and the FR60™ compact LiDAR for robotics and Physical AI applications.
According to the latest research from Yole Group, the global automotive LiDAR market is projected to grow from
The continued scaling of AI data-center networking has accelerated silicon photonics process maturity and manufacturability, expanding its adoption in systems requiring tightly integrated optical functionality. Tower Semiconductor’s advanced silicon photonics platform, widely utilized in large-scale AI infrastructure deployments, provides a strategic foundation for extending silicon photonics into sensing-driven Physical AI and automotive applications. LightIC Technologies applies this platform to FMCW LiDAR, integrating the optical functions required for coherent ranging and instantaneous velocity sensing directly onto silicon. As SiPho based FMCW LiDAR technology rapidly matures, it is expected to capture larger share of the global LiDAR market analogous to the rapid growth of silicon photonics-based components in data-center networking.
“We are excited to expand our silicon photonics market beyond that of AI infrastructure into new sensing applications,” said Dr. Ed Preisler, Vice President and General Manager of RF Business Unit at Tower Semiconductor. “Our joint work with LightIC and its team of experts is a key step in bringing to market velocity-aware sensing for robotics, Physical AI and automotive markets.”
The collaboration combines LightIC’s silicon photonic design capabilities with Tower’s silicon photonics manufacturing platform to enable higher levels of optical integration and improvements in size, weight, power, and cost (SWaP-C), supporting the transition of velocity-aware LiDAR from advanced development into real-world automotive and Physical AI deployment.
“Utilizing Tower’s silicon photonics process enables us to integrate complex coherent LiDAR optical functions into silicon on a scalable, manufacturable platform suitable for product qualification and long-term production,” said Jie Sun, CEO and Co-Founder of LightIC. “This level of integration is fundamental to delivering commercially viable 4D FMCW LiDAR solutions for automotive and Physical AI applications.”
For additional information about Tower Semiconductor’s SiPho technology platform, visit here.
For more information about LightIC, please visit www.lightictech.com.
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
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 LightIC
Founded in 2019, LightIC Technologies is a global leader in silicon photonics–based FMCW LiDAR, with deep expertise in designing and integrating silicon photonic chips for scalable, high-performance sensing. The company develops highly integrated LiDAR-on-a-chip solutions powering next-generation automotive, robotics, and physical AI applications. LightIC is among the few companies worldwide to have successfully delivered low-SWaP-C FMCW LiDAR systems into real-world deployment.
For more information, please visit: www.lightictech.com
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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
LightIC Technologies Company Contacts: bd@lightictech.com
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FAQ
What did Tower Semiconductor announce about LightIC on January 5, 2026 (TSEM)?
How does the TSEM–LightIC collaboration affect LiDAR manufacturability?
What market growth figures did the announcement cite for automotive LiDAR (TSEM)?
Which LightIC products are included in the Tower partnership (TSEM)?
What technical advantages does Tower say the partnership will target (TSEM)?
Will the partnership support automotive and Physical AI deployments (TSEM)?
