Tower Semiconductor stock advances near-package optics with Innolight

Tower Semiconductor and Innolight announced on Tuesday, November 3, 2026, that their continued collaboration has reached a production milestone in Near-Package Optics for artificial-intelligence and cloud infrastructure. The announcement links Tower's silicon photonics manufacturing platforms with Innolight's optical connectivity designs.

First Device Enters Early Production

According to the release carried by Slicast, Innolight's first Near-Package Optics device has entered early production using Tower's PH18M silicon photonics process at Tower's California facility. Innolight has also taped out multiple NPO products on Tower's 300mm silicon photonics platform for future product generations.

NPO designs place optical connectivity closer to computing packages and can require substantially more optical channels than conventional pluggable modules. The companies said the architectures are intended to address rising bandwidth requirements from next-generation AI and cloud systems.

Manufacturing Scale Becomes Central

The collaboration is strategically relevant because NPO products require high process control, yield performance and the ability to integrate several photonic functions on a single chip. Tower said its platforms support functions including wavelength division multiplexing and demultiplexing, which can increase functionality while limiting package size.

Innolight Chief Technology Officer Oliver Sun described Near-Package Optics as an emerging technology for next-generation AI and cloud infrastructure. Tower President Marco Racanelli said Innolight is a key technology partner and a cornerstone manufacturing customer across four Tower facilities in the United States, Israel and Japan.

The announcement adds a product-development milestone to Tower's broader silicon photonics expansion. The company's second-quarter release said silicon photonics had reached a 680 million US dollar annualized revenue run rate in the second quarter, compared with 180 million US dollars a year earlier. That earlier disclosure also set a target of more than 1 billion US dollars for the fourth quarter of 2026.

Tower Semiconductor stock traded at 141.75 euros on Lang & Schwarz at 11:03 CET on Friday, November 13, 2026.

For investors, the cooperation strengthens Tower's exposure to AI-related optical connectivity, while execution, production yields and customer adoption remain important factors for converting design wins into recurring shipments. The TA-35 market environment provides the broader Israeli equity backdrop.

More news and analyses on Tower Semiconductor stock track the company's silicon photonics expansion and customer programs.