Semtech announced that it has acquired HieFo Corporation, a California-based manufacturer of high-efficiency Indium Phosphide (InP) optoelectronic devices used in optical transceivers for data center connectivity. The acquisition is aimed at strengthening Semtech’s semiconductor platform for next-generation data center networking and supporting the accelerating buildout of artificial intelligence infrastructure.
HieFo develops InP-based optoelectronic components, including gain chips and distributed feedback laser chips, which are essential building blocks for optical transceivers used in both data center interconnect and intra-data center connectivity. These components are integral to the high-speed optical networking required for increasingly complex AI workloads.
Semtech said the transaction enhances U.S. technology supply chains by expanding domestic manufacturing capacity and integrating critical upstream components into its semiconductor portfolio. The acquisition also allows the company to combine HieFo’s optical device technologies with Semtech’s existing transimpedance amplifiers and laser driver solutions, creating more tightly integrated electronic-optoelectronic-photonic chipsets.
According to the company, the combined technologies will enable better performance optimization across optical modules used in hyperscale data centers while helping to reduce system power consumption. The integration is designed to support the emerging transition to 1.6T and future 3.2T optical networking architectures, which require significantly higher bandwidth and efficiency.
HieFo’s gain chips are used within tunable lasers that power coherent optical transceivers, while its distributed feedback laser platform is designed for intensity-modulation direct-detection links in optical transceiver modules. These technologies help deliver improved power efficiency and performance across temperature ranges, which are critical for high-density data center deployments.
Semtech acquired HieFo for approximately $34 million in cash. The company said it plans to invest in expanding manufacturing capacity and hiring at HieFo’s facility in Alhambra, California, to meet increasing demand from hyperscale data center operators and other customers across the AI ecosystem.
Integration of HieFo into Semtech’s operations is already underway. The company expects the acquisition to become accretive to non-GAAP diluted earnings per share within the first year.
The transaction was reviewed by the Committee on Foreign Investment in the United States and received non-objection in accordance with a Presidential order issued on January 2, 2026.
Semtech also announced it will showcase its technologies at OFC 2026 in Los Angeles, where customers and partners will have the opportunity to meet with its technical experts and learn more about the expanded data center portfolio.
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 Chief Executive Officer, Semtech Corporation
