IQE (AIM:IQE), supplier of compound semiconductor wafers, has agreed a multi-year supply agreement to provide Indium Phosphide (InP) epiwafers to Tower Semiconductor for advanced silicon photonics targeting AI-driven data-centre connectivity.
The contract covers supply for Tower's platforms including 200Gbs/lane pluggable transceivers, prototyping of 400Gb/lane modulators and optical-circuit-switch applications, and includes a minimum purchase commitment by Tower in the first year and minimum volume commitments thereafter.
The arrangement also contains a reciprocal supply commitment from IQE to support Tower's product roadmap and high-volume manufacturing needs.
Under a separate agreement Tower grants IQE a broad worldwide, royalty-free licence to porous silicon patents, settling all outstanding litigation between the companies.
"This agreement reinforces IQE's position within Tier 1 global hyperscale cloud and AI infrastructure markets," said Jutta Meier, Chief Executive Officer of IQE.
Deliveries under the first-year minimum purchase commitment will provide the immediate test of supply scale as the partners move prototypes toward commercial deployment.
