Tower Semiconductor, with Japanese government support, is expanding its 300mm Silicon Photonics, Silicon Germanium, and advanced packaging capabilities, targeting $3.6 billion in revenue by 2028. AAOI commenced a 400,000 square foot manufacturing buildout for 800G/1.6T optical transceiver production, supported by local Texas government subsidies.
New capacity for silicon photonics and high-speed optical transceivers will alleviate networking bottlenecks in AI data centers, increasing supply for critical interconnects.