Tower Semiconductor, Semtech Expand Partnership to Secure AI Chip Capacity

06:28 AM EDT, 10/13/2026 (MT Newswires) -- Tower Semiconductor (TSEM) and Semtech (SMTC) said Tuesday that they have expanded their 20-year partnership through a multi-year agreement securing dedicated silicon germanium manufacturing capacity for AI data center components. Semtech will reserve capacity across Tower's facilities in the US, Israel and Japan to support demand for high-speed optical and copper interconnect technologies. The companies said that the agreement builds on Semtech's design wins as data center bandwidth requirements rise, with industry development progressing from 800G and 1.6T toward 3.2T connectivity.