OpenLight and Tower Semiconductor Demonstrate 400G/lane Modulators Built on Silicon Photonic Wafers for Data Centers and AI Optical Connectivity

Rhea-AI Summary

OpenLight and Tower Semiconductor (NASDAQ/TASE: TSEM) have successfully demonstrated a 400G/lane modulator on Tower's integrated silicon photonics platform PH18DA. The innovation achieved a better than 3.5db extinction ratio using PAM-4 modulation format at 0.6 volts peak-to-peak drive voltage.

The demonstration, built using OpenLight's IP on Tower's existing platform, supports next-generation optical communication architectures from 100G to 400G/lane. Operating across all four CWDM wavelengths, it enables a commercially viable path for DR8 and FR4 next-generation 3.2Tb solutions.

The technology offers significant advantages for datacom and AI applications, including small size, high bandwidth, low drive voltage, and volume manufacturability. The platform also supports heterogeneous integration of modulators, lasers, and optical amplifiers on a single, compact photonic integrated circuit (PIC).

Positive

• Successfully demonstrated 400G/lane modulator technology, expanding product portfolio
• Platform enables scalable solutions from 100G to 400G/lane, future-proofing customer designs
• Cost-effective solution compared to complex alternatives like TFLN, BTO or polymers
• Drop-in replacement capability minimizes design, layout and time to market

Negative

• None.

Insights

Semiconductor Industry Analyst

Tower Semiconductor's successful demonstration of 400G/lane modulators with OpenLight marks a significant technological breakthrough in the silicon photonics space. This achievement addresses a critical limitation in the industry, as pure silicon-based modulators currently cannot support 400G bit rates - a capability increasingly essential for AI and data center applications.

What makes this development particularly valuable is its backward compatibility with Tower's existing platform. The solution provides a seamless upgrade path from current 100G and 200G implementations to 400G, minimizing design changes and accelerating time-to-market for customers. This represents a powerful competitive advantage over alternative technologies like Thin Film Lithium Niobate or BTO that require more complex integration.

The timing aligns perfectly with market demands, as data centers and AI applications are driving unprecedented need for higher bandwidth connectivity. By enabling next-generation 3.2T optical communication architectures, Tower is positioning itself as a key supplier in the high-performance computing ecosystem.

While this announcement focuses on a technical demonstration rather than production-ready products, the specification that it's "immediately ready for customer prototyping" suggests a relatively short commercialization timeline, potentially translating to revenue opportunities in the near to mid-term as customers begin adopting this technology for next-generation infrastructure builds.

Optical Communications Expert

The 400G/lane modulator demonstration by Tower and OpenLight represents a technical milestone for silicon photonics in optical communications. The achievement of 3.5db extinction ratio using PAM-4 modulation at just 0.6V peak-to-peak is impressive, delivering performance metrics that enable practical deployment in commercial applications.

This development comes at a critical juncture as datacom and AI applications are increasingly bandwidth-constrained. The heterogeneous integration approach showcased here offers substantial advantages over competing solutions - combining compact size, high bandwidth, and low power consumption while maintaining manufacturability at scale. The ability to operate across all four CWDM wavelengths further enhances its versatility for both DR8 and FR4 implementations.

From a manufacturing perspective, leveraging Tower's established PH18DA platform provides a significant advantage. Rather than requiring completely new fabrication processes, this technology builds upon existing manufacturing capabilities, reducing production risks and potentially accelerating time-to-market. The drop-in replacement capability for existing 200G designs is particularly valuable for system integrators looking to upgrade performance without complete redesigns.

For Tower, this positions them strongly in the optical connectivity supply chain for AI infrastructure - a market growing exponentially as accelerated computing demands higher-bandwidth interconnects between compute nodes. While competitors are exploring various approaches to 400G/lane solutions, the integration of modulators, lasers, and optical amplifiers on a single PIC represents a comprehensive offering that could capture significant market share.

Innovation paves the way for a high-volume, silicon photonics 400G/lane platform to meet next-generation 3.2T optical communication architectures for datacom and AI applications.

SANTA CLARA, Calif. and MIGDAL HAEMEK, Israel, March 12, 2025 /PRNewswire/ -- OpenLight, the world leader in custom PASIC chip design and manufacturing, and Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry of high-value analog semiconductor solutions, today announced the successful demonstration of the 400G/lane modulator on Tower's commercially available, integrated silicon photonics platform, PH18DA, achieving a better than 3.5db extinction ratio using the industry-standard PAM-4 modulation format and at a drive voltage of 0.6 volts peak-to-peak. The 400G demonstration is built using OpenLight's IP on Tower's existing silicon photonics platform already supporting customers at 100G and 200G/lane.

The integrated silicon photonics demonstration is designed to support next-generation 400G/lane optical communication architectures, offering a scalable solution from 100G to 200G to 400G to fill the growing demand for high-speed data transfer in cloud computing, AI and ML applications. Operating at 400G per lane, across all four CWDM (Coarse Wavelength Division Multiplexing) wavelengths, this enables a commercially viable path for both DR8 and FR4 next-generation 3.2Tb solutions and beyond.

Currently, pure silicon-based modulators are unable to support bit rates of 400G, pointing out a clear need for a cost-effective solution in the industry. For datacom and AI applications, including LPO and CPO, heterogeneous integrated based devices deliver significant advantages: small size, high bandwidth, low drive voltage and volume manufacturable on a silicon photonics platform. In addition to the heterogeneous integration of 400G modulators, lasers and optical amplifiers all on a single, compact, cost- and power-efficient photonic integrated circuit (PIC) are available on the platform.

"Our partnership with Tower represents a critical step in the integration of advanced silicon photonics into the datacom landscape. The success of this demonstration sets the stage for groundbreaking advancements in high-speed networking," said Dr. Adam Carter, CEO of OpenLight. "Utilizing our existing 200G heterogeneous modulator design, we have now future-proofed customers' PASIC designs from 100G to 200G to 400G per lane, minimizing design, layout and time to market, as this 400G modulator is a drop-in replacement for existing 200G modulator PASIC designs. The other added benefit of using the same design is the proven high-reliability performance and the ability to use flip chip processes when packaging into an integrated optical sub-assembly."

"We're pleased to collaborate with OpenLight, leveraging their cutting-edge silicon photonics technology to create a cost-effective approach to support 400G/lane. This is an extension of our PH18DA platform currently supporting customers at 100G and 200G/lane and now providing a robust solution for 400G/lane that is immediately ready for customer prototyping. This is a significant step toward providing scalable, reliable, high-performance and manufacturable solutions for the next generation of optical communication technology," said Russell Ellwanger, CEO of Tower Semiconductor. "By utilizing Tower's PH18DA platform, this collaboration allows OpenLight's heterogeneous integration technology to provide a secure path to higher speeds without the need for complex and expensive integration alternatives like Thin Film Lithium Niobate (TFLN), BTO or polymers." 

For more detailed information on this and OpenLight, please visit OpenLight at the OFC Conference on 1-3 April 2025, booth# 4231.

For more detailed information on this and Tower Semiconductor's technology offerings, please visit Tower's booth at the OFC Conference, 1-3 April 2025, booth #3222.

About OpenLight 

OpenLight is the world leader in custom PASIC design. OpenLight's PASIC technology integrates all the components of silicon photonics devices, both active and passive components, into one chip. Our executive and engineering teams deliver the world's first open silicon photonics platform with integrated lasers, amplifiers and modulators to improve the performance, power efficiency and reliability of designs for telecom, datacom, LiDAR, healthcare, HPC, AI and optical computing applications. With over 350 patents, OpenLight is bringing optical solutions to places they have never been before and enabling technologies and innovation that weren't previously possible. The company is headquartered in Santa Barbara, California, with offices in Silicon Valley. Read more at www.openlightphotonics.com. 

About Tower Semiconductor         

Tower Semiconductor Ltd. (NASDAQ/TASE: TSEM), the leading foundry of high-value analog semiconductor solutions, provides technology, development and process platforms for its customers in growing markets such as consumer, industrial, automotive, mobile, infrastructure, medical and aerospace and defense. Tower Semiconductor focuses on creating a positive and sustainable impact on the world through long-term partnerships and its advanced and innovative analog technology offering, comprised of a broad range of customizable process platforms such as SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, displays, integrated power management (BCD and 700V), photonics and MEMS. Tower Semiconductor also provides world-class design enablement for a quick and accurate design cycle as well as process transfer services, including development, transfer and optimization, to IDMs and fabless companies. To provide multi-fab sourcing and extended capacity for its customers, Tower Semiconductor owns one operating facility in Israel (200mm), two in the U.S. (200mm), and two in Japan (200mm and 300mm), which it owns through its 51% holdings in TPSCo. It also shares a 300mm facility in Agrate, Italy, with STMicroelectronics as well as has access to a 300mm-capacity corridor in Intel's New Mexico factory. For more information, please visit www.towersemi.com. 

Safe Harbor Regarding Forward-Looking Statements

This press release includes forward-looking statements, which are subject to risks and uncertainties. Actual results may vary from those projected or implied by such forward-looking statements. A complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this press release or which may otherwise affect Tower's business is included under the heading "Risk Factors" in Tower's most recent filings on Forms 20-F, F-3, F-4 and 6-K, as were filed with the Securities and Exchange Commission (the "SEC") and the Israel Securities Authority. Tower does not intend to update, and expressly disclaims any obligation to update, the information contained in this release. 

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SOURCE OpenLight

FAQ

What performance metrics did TSEM's 400G/lane modulator achieve in the demonstration?

The modulator achieved better than 3.5db extinction ratio using PAM-4 modulation format at 0.6 volts peak-to-peak drive voltage.

How does TSEM's PH18DA platform support different data transfer speeds?

The platform supports scalable solutions from 100G to 200G to 400G/lane, enabling next-generation 3.2Tb solutions across all four CWDM wavelengths.

What advantages does TSEM's silicon photonics platform offer for datacom and AI applications?

It offers small size, high bandwidth, low drive voltage, and volume manufacturability, with integrated modulators, lasers, and optical amplifiers on a single PIC.

How does TSEM's 400G modulator solution compare to traditional silicon-based modulators?

Unlike pure silicon-based modulators that cannot support 400G bit rates, TSEM's solution provides a cost-effective, high-speed alternative without complex integration methods.