Semtech Expands Data Center Portfolio with Acquisition of HieFo Corporation

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Semtech Corporation, a leading provider of high-performance semiconductor, Internet of Things (IoT) systems and cloud connectivity service solutions, announced the acquisition of HieFo Corporation (HieFo), a California-based private manufacturer of high-efficiency Indium Phosphide (InP) optoelectronic devices for optical transceivers used across data center interconnects (DCI) and intra-data center interconnects.

The addition of HieFo to Semtech’s portfolio of semiconductor solutions bolsters U.S. technology supply chains, adding new capacity and resiliency at a key inflection point in the AI infrastructure buildout. The transaction also represents a compelling opportunity to infuse critical upstream components for the optical module supply chain directly into Semtech's growing data center platform, adding another vital element to its expansive chipset portfolio for data center networking connectivity.

“The evolution to 1.6T and 3.2T data center architectures represents a fundamental shift in optical interconnect complexity,” said Hong Hou, president and CEO of Semtech. “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.”

HieFo Solutions

HieFo continues to develop innovative and power efficient optoelectronic component solutions to serve AI connectivity markets, leveraging more than four decades of innovation in optoelectronic devices. HieFo’s core technology centers on InP-based gain chips and distributed feedback (DFB) laser chips. Gain chips are the light-emitting building blocks embedded within tunable lasers that power coherent optical transceivers used across data center applications. In addition, HieFo’s DFB laser platform offers best-in-class power and wall plug efficiency over temperature for intensity-modulation direct-detection (IMDD) links used in optical transceiver modules.

By acquiring HieFo, Semtech gains the ability to co-develop and co-optimize InP optoelectronic chip performance alongside its industry-leading transimpedance amplifiers (TIAs) and laser/modulator drivers, creating an optimized electronic-optoelectronic-photonic chipset for high bandwidth transceivers. This level of integration enables tighter performance optimization across the laser-modulator-driver interface, reduces system power consumption, and offers differentiated products for hyperscalers, navigating the demanding requirements of 1.6T and next-generation 3.2T optical modules.

Financial Details

Semtech acquired HieFo Corporation for approximately $34 million in cash. To meet significantly growing demand from numerous hyperscalers and other customers across the AI ecosystem, Semtech has initiated an investment and hiring plan at HieFo’s Alhambra, California site to expand domestic manufacturing capacity and accelerate product development. Integration of HieFo into Semtech’s operations is underway, with the transaction expected to be accretive to non-GAAP diluted earnings per share within the first year.

Regulatory Approval

The transaction was reviewed by and received the non-objection of the Committee on Foreign Investment in the United States, in compliance with the Presidential order of Jan. 2, 2026, regarding HieFo.