# Innolight’s first near-package optics device begins early production with Tower Semiconductor

Digest AI · Hardware & Compute · published 2026-11-03T18:36:04Z

Canonical: https://digestai.news/story/innolights-first-near-package-optics-device-begins-early-production-wi

## Summary

Innolight’s first near-package optics (NPO) device is now in early production on Tower Semiconductor’s PH18M silicon photonics process in California. The collaboration combines Innolight’s optical interconnect development with Tower’s high-volume manufacturing to meet AI infrastructure demands for higher bandwidth and efficiency. Innolight’s CTO Oliver Sun emphasized the partnership aims to accelerate NPO adoption for hyperscale and AI data-center customers, while Tower president Marco Racanelli called Innolight a key manufacturing partner across four facilities globally.

The NPO devices integrate 16+ optical channels per chip, requiring advanced manufacturing expertise and process control. Tower’s silicon photonics platform supports monolithic integration of photonic functions like wavelength-division multiplexing, addressing AI workloads’ growing bandwidth needs. Tower’s CEO Russell Ellwanger previously noted NPO offers higher bandwidth density and lower energy per bit than conventional pluggable optics, leveraging the same reliability-focused ecosystem. While Innolight’s 400G and 800G products were already in production on Tower’s PH18 process, the NPO milestone extends their partnership into denser, multi-channel devices. Tower’s ability to sustain process control and yield remains critical as these devices scale.

## Key points

- Innolight’s first NPO device enters early production on Tower Semiconductor’s PH18M process in California
- Partnership combines Innolight’s optical interconnects with Tower’s silicon photonics manufacturing for AI data centers
- NPO devices integrate 16+ optical channels per chip, requiring advanced process control and yield

## Why it matters

Near-package optics (NPO) devices reduce energy use and increase bandwidth density for AI workloads, addressing data-center scaling challenges. This milestone signals progress in silicon photonics manufacturing, critical for next-gen AI infrastructure.

## Sources

1. [Innolight’s First Near-Package Optics Device Enters Early Production](https://unite.ai/innolights-first-near-package-optics-device-enters-early-production) (Unite.AI, 2026-11-03)

## Cite

Digest AI, "Innolight’s first near-package optics device begins early production with Tower Semiconductor", 3 November 2026, https://digestai.news/story/innolights-first-near-package-optics-device-begins-early-production-wi

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