Tower Semiconductor and Oriole Partner to Accelerate AI Networking with Optical Circuit Switching — Tower Semiconductor Ltd.

Event summary

Tower Semiconductor and Oriole Networks announced a collaboration on March 16, 2026, to develop ultra-low, deterministic-latency networking for AI infrastructure using nanosecond optical circuit switching.
Oriole’s PRISM and PRISM Ultra networking platforms will leverage Tower’s silicon photonics platform to enable high-speed optical circuit switching and transceivers for AI clusters.
The AI Networking market is projected to exceed $80B by 2030, according to Dell’Oro and LightCounting.
Tower’s silicon photonics platform integrates lasers, optical amplification, switching, high-speed modulation, and detection on a single platform.

The big picture

The partnership between Tower Semiconductor and Oriole Networks addresses the growing need for high-radix networks with massive bandwidth and low latency in AI infrastructure. As AI models scale, traditional electrical, packet-switched network infrastructure is becoming inadequate, driving demand for innovative solutions like nanosecond optical circuit switching. This collaboration positions both companies at the forefront of the AI networking market, which is expected to surpass $80B by 2030.

What we're watching

Technology Adoption: How quickly Oriole’s nanosecond optical circuit switching technology will be integrated into AI infrastructure and whether it can displace legacy electrical switching solutions.
Market Growth: The pace at which the AI Networking market will expand, particularly as AI models continue to scale and demand for high-radix networks increases.
Competitive Dynamics: Whether Tower Semiconductor and Oriole can maintain a competitive edge in the rapidly evolving AI networking space amid potential entrants and technological advancements.