Semtech Secures Dedicated SiGe Capacity at Tower for AI Data Center Interconnects
SMTC has more than doubled off its 52-week low of $60.28 on elevated volume (2.0× avg).
Summary
Semtech and Tower Semiconductor expanded their 20-year partnership with a multi-year agreement securing dedicated silicon germanium (SiGe) capacity across Tower's fabs in the US, Israel, and Japan. Semtech will invest to lock in supply for its optical and copper interconnect components used in AI data centers, targeting 800G, 1.6T, and 3.2T speed generations. The deal adds geographic diversification and supply assurance as demand for SiGe-based products grows. This follows Semtech's record Q2 FY27 revenue of $341.9M and strong Q3 guidance of $410M, reinforcing its AI infrastructure momentum. The agreement also highlights a joint technology roadmap and Semtech's recent ECOC 2026 award for its 224 Gbps per Lane TIA family built on Tower's SiGe process.
At the time of this announcement, SMTC was trading at $166.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $15.7B. The 52-week trading range was $60.28 to $201.99. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.