Coherent Corp. and Tower Semiconductor demonstrated a 400 Gbps per lane data transmission using a silicon modulator fabricated in a production‑ready silicon photonics process. The test, conducted in Israel and presented at the 2026 OFC conference in Los Angeles, used Coherent’s indium‑phosphide continuous‑wave high‑power laser to drive the silicon modulator, producing a clear eye diagram at 420 Gbps PAM‑4.
The achievement targets next‑generation 3.2 T optical transceivers and expands silicon’s role in pluggable transceivers and co‑packaged optics for data‑center interconnects. By avoiding exotic materials such as lithium niobate or thin‑film electro‑optic polymers, the silicon‑only approach offers a more cost‑effective and scalable path that can leverage existing silicon manufacturing infrastructure.
Tower CEO Russell Ellwanger said the result can extend the use of silicon for another generation of transceivers, re‑utilizing the large multi‑fab capacity investments they continue to make while proceeding with work on more advanced material systems for next generations. Coherent CEO Jim Anderson noted the partnership advances high‑performance optical interconnects for AI‑driven data centers.
The demonstration comes at a time of accelerating demand for high‑bandwidth optical interconnects in AI data centers. Tower Semiconductor reported Q2 2024 revenue of $351 million and net profit of $53 million, up from $327 million and $45 million in Q1 2024. Coherent’s Q2 fiscal 2025 revenue reached $1.43 billion with a non‑GAAP EPS of $0.95, reflecting strong performance in its core optical interconnect business.
By proving a silicon‑based path to 3.2 T transceivers, the collaboration positions both companies to capture a growing market segment while maintaining cost advantages. The milestone also signals confidence in silicon photonics as a scalable technology for future high‑speed data‑center applications.
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