Tower Semiconductor ships 5 million photonic chips as AI data centers race to ditch copper

Tower Semiconductor and Marvell Technology have shipped over five million photonic integrated circuits for AI data center interconnects, marking a shift from copper to light-based data transmission. The company has secured $1.3 billion in silicon photonics contracts for 2027, with $290 million in customer prepayments, signaling that hyperscalers view the technology as critical AI infrastructure.

Tower Semiconductor ships 5 million photonic chips as AI data centers race to ditch copper The chipmaker's $1.3 billion in 2027 contracts signals that silicon photonics is becoming essential infrastructure for AI workloads, with implications for the broader digital asset ecosystem. Tower Semiconductor and Marvell Technology have shipped more than five million coherent photonic integrated circuits designed for AI data center interconnects. The milestone, announced on June 18, represents a tangible shift from copper-based interconnects to light-based data transmission inside the facilities that power large language models. Tower isn’t just shipping chips. It’s signing checks: $1.3 billion in silicon photonics contracts for 2027, backed by roughly $290 million in customer prepayments. Why light beats copper, and why it matters now Silicon photonics integrates optical components directly onto silicon wafers, enabling data to move at the speed of light rather than through metal wires, with a significantly reduced energy footprint. Tower’s latest solutions reportedly deliver up to double the data rate of prior platforms while consuming less power. The company’s PH18 platform serves as the foundational technology enabling volume production of these photonic circuits, functioning as what Tower calls a “global open silicon photonics platform,” meaning multiple partners can build on top of it rather than developing proprietary solutions from scratch. Those partners include NVIDIA, which has developed 1.6T optical modules using the technology. Scintil Photonics contributed heterogeneously integrated DWDM lasers. OpenLight is working on laser-integrated PICs targeting 800G and 1.6T functionality. Xscape Photonics is also among the partners, signaling demand extending beyond the largest players. The AI infrastructure arms race heats up Tower’s partnerships spanning 2025 and 2026 show a methodical build-out of its photonics ecosystem. The five million shipped units and $290 million in customer prepayments indicate that hyperscalers view silicon photonics as critical infrastructure they need to lock down supply for, not experimental technology. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy https://cryptobriefing.com/editorial-policy/ .