Semtech announced it has acquired HieFo, a California-based manufacturer of indium phosphide optoelectronic devices used in optical transceivers for data center interconnects. The transaction expands Semtech’s portfolio of semiconductor technologies supporting high-speed data center networking and AI infrastructure.
HieFo develops high-efficiency indium phosphide (InP) optoelectronic components, including gain chips and distributed feedback laser chips used in optical modules deployed in data center interconnect and intra-data center connectivity. These components serve as critical building blocks for optical transceivers that enable high-bandwidth communication between servers and networking infrastructure.
By integrating HieFo’s technology with its own semiconductor solutions, Semtech aims to strengthen its chipset portfolio for next-generation data center networking platforms. The acquisition provides the company with upstream optical component capabilities that can be co-developed alongside Semtech’s transimpedance amplifiers and laser driver technologies to deliver optimized electronic, optoelectronic and photonic chipsets for high-bandwidth transceivers.
The combined technology stack is designed to support emerging optical networking architectures such as 1.6T and 3.2T data center platforms, as hyperscale operators expand infrastructure to support AI workloads and increasing data traffic. The integration also enables tighter optimization between lasers, modulators and drivers, improving system performance and reducing power consumption for hyperscale data center applications.
HieFo’s technology portfolio centers on indium phosphide-based gain chips that serve as light-emitting elements in tunable lasers powering coherent optical transceivers used in data center environments. The company also develops distributed-feedback laser chips that deliver high power efficiency and performance stability across temperature ranges for intensity-modulation direct-detection links used in optical modules.
Through the acquisition, Semtech plans to integrate HieFo into its data center platform strategy and expand domestic manufacturing capabilities. The company has initiated plans to increase investment and hiring at HieFo’s facility in Alhambra, California in order to support growing demand from hyperscale customers and AI infrastructure deployments.
Financial terms of the deal include approximately $34 million in cash consideration. Semtech said the transaction is expected to be accretive to non-GAAP diluted earnings per share within the first year following completion.
The acquisition was reviewed by the Committee on Foreign Investment in the United States and received a non-objection in compliance with a Presidential order issued on January 2, 2026.
KEY QUOTE:
“The evolution to 1.6T and 3.2T data center architectures represents a fundamental shift in optical interconnect complexity. By combining HieFo’s proven InP technology, including lasers and gain chips, with Semtech’s industry-leading TIAs and laser drivers, we can offer customers a comprehensive solution for next-generation optical platforms, including co-packaged optics (CPO) or near-packaged optics (NPO), strengthening Semtech’s position as a leader in high-bandwidth, low-power and low-latency networking solutions. Equally important, we believe strongly in the people and domestic capabilities we are bringing into Semtech through this acquisition, and we are committed to investing in their growth and success.”
Hong Hou, President And CEO Of Semtech
