Tower Semiconductor Picks Japan as $4B Main Hub for AI Optical Communication Chips

Israeli foundry Tower Semiconductor said it will make Japan its largest production hub for optical communication chips as part of a $4B investment, CEO Russell Ellwanger told Nikkei. Optical interconnect is one of the tightest bottlenecks in scaling AI training clusters; Tower already runs fabs in Japan, Israel and the US, but Japan will now be the flagship site for the AI-server optical parts.