IQE and Tower Semiconductor Announce Multi-year InP epiwafer Supply Agreement

Supporting planned growth in InP silicon photonics technology

Resolving all prior IP disputes between the companies

IQE plc (AIM:  IQE, “IQE” or the “Group”), the leading global supplier of compound semiconductor wafer products and advanced material solutions, and Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry for high-value analog semiconductor solutions, are pleased to announce a multi-year agreement for the supply of Indium Phosphide (InP) epiwafers for optical connectivity solutions serving AI-driven data centre infrastructure.

IQE’s InP epiwafers will be used in several of Tower’s advanced silicon photonics platforms for next-generation optical technologies, providing a high-quality supply base for Tower’s product roadmap. IQE and Tower’s collaboration includes technology for the production of 200Gbs/lane for pluggable transceivers and the prototyping of next-generation 400Gb/lane modulators, as well as other critical applications including optical-circuit-switches for deployment in datacentres. The agreement provides for a minimum purchase commitment by Tower in the first year, a reciprocal supply commitment from IQE, and minimum volume commitments thereafter.

Under a separate agreement, Tower will also provide a broad worldwide and royalty-free license to IQE for porous silicon patents which have been the subject of an IP dispute between the companies, settling all litigation in the matter.

Jutta Meier, Chief Executive Officer of IQE, commented:

“I am pleased to move forward together with Tower, already the leader in silicon photonics. This agreement reinforces IQE’s position within Tier 1 global hyperscale cloud and AI infrastructure markets. With decades of InP epitaxy expertise and established high-volume manufacturing capability, IQE is primed to support next-generation optical connectivity applications as they scale from innovation to commercial deployment.”

Dr. Marco Racanelli, President of Tower Semiconductor, commented:

“We are pleased to partner with IQE as a key supplier for our next-generation photonic technologies that add InP high-performance components to our high-volume, mature, silicon photonics platform. The combination will enable products that can deliver both the performance and high volumes required to scale future AI infrastructure capacity.”