IQE and Tower Sign a Multi-year InP Epitaxial Wafer Supply Agreement

IQE plc, a global leader in compound semiconductor wafer products and advanced materials solutions, and Tower Semiconductor, a leading foundry for high-value analog semiconductor solutions, today announced the signing of a multi-year agreement under which IQE will supply phosphide (InP) epitaxial wafers for optical interconnect solutions serving AI-driven data center infrastructure.

Agreement Content and Technical Cooperation

IQE’s InP epitaxial wafers will be utilized across Tower’s multiple advanced silicon photonics platforms to support next-generation optical technologies, providing a high-quality supply foundation for Tower’s product roadmap. The collaboration between IQE and Tower encompasses mass production technologies for 200Gbps/channel (200Gb/lane) pluggable transceivers, prototype development of next-generation 400Gb/channel (400Gb/lane) modulators, and other critical applications such as optical circuit switches deployed in data centers. The agreement specifies Tower’s minimum procurement commitments in the first year, IQE’s corresponding supply commitments, and minimum quantity commitments for subsequent years.

Intellectual Property Dispute Resolution

Under another independent agreement, Tower will also grant IQE a worldwide, royalty-free patent license for porous silicon, which previously served as the subject of intellectual property disputes between the two companies. This agreement resolves all related litigation.

Senior executives from both sides expressed their stance

IQE CEO Jutta Meier stated, “I am delighted to partner with Tower, a leader in the silicon photonics field. This agreement strengthens IQE’s position in the global hyperscale cloud service provider and AI infrastructure markets. With decades of expertise in InP epitaxy technology and mature large-scale production capabilities, IQE is well-positioned to support the scaling process from innovation to commercial deployment for next-generation optical connectivity applications.”

Dr. Marco Racanelli, President of Tower Semiconductor, stated: “We are delighted to collaborate with IQE to establish them as a key supplier for our next-generation photonic technologies. This technology integrates high-performance InP components into our high-volume, mature silicon photonics platform. This combination will enable the delivery of products that simultaneously meet performance and high-yield requirements, supporting the expansion of future AI infrastructure capacity.”