CPO Is Not the Endgame: Tower Bets on 3D Optical Engines and Optical I/O Chiplets - semivision

As AI infrastructure scales rapidly, the semiconductor industry is undergoing a significant structural transformation. While past discussions around AI chips centered on GPUs, ASICs, HBM, and advanced... Read original →

The shift in AI infrastructure is redirecting industry focus from computational power to data movement efficiency, prompting Tower Semiconductor to pivot beyond traditional node competition toward advanced technologies like silicon photonics, SiGe, and 3D integration. Its move toward 3D optical engines and optical I/O chiplets signals a post-CPO evolution in photonic interconnects. This transition will reshape upstream demands for EUV, TSV, and hybrid bonding technologies, while pressuring TSMC and UMC to adapt. Geopolitical risks, especially in China Taiwan/ Taiwan, China and U.S. export controls, pose supply chain vulnerabilities. Competitively, NVIDIA may accelerate in-house photonic integration, while SMIC and UMC could leverage this trend to strengthen their photonic capabilities. Over the next 12–24 months, optical chiplets will likely define the next competitive frontier in AI data centers, with Tower’s 3D optical platform emerging as a key contender.