Friday, April 17, 2026

Molex Acquires Teramount to Accelerate Scalable Co-Packaged Optics for AI and Data Centers

Molex, a world-class connectivity and electronic company, has entered into a binding agreement to purchase Teramount Ltd., an Israeli company that is a leader in developing fiber-to-chip optical connection technology. This strategic move focuses on addressing the most urgent issue within the semiconductor sector; namely, the necessity of Co-Packaged Optics (CPO).

Teramount’s proprietary TeraVERSE platform provides a field-serviceable, detachable interface between optical fibers and silicon photonics chips. By utilizing a universal photonic coupler and wafer-level self-aligning optics, the technology solves the complex alignment challenges that have historically hindered the mass adoption of CPO.

As AI workloads drive an exponential need for faster data rates, the TeraVERSE solution enables superior bandwidth density while significantly reducing the power and cooling demands within hyperscale data centers.

“Teramount’s TeraVERSE technology fills a crucial gap in the CPO stack, offering an advantaged and strategic complement to our optical solutions portfolio. With a practical, detachable fiber-to-chip interface we are afforded a foundational element to realize mainstream CPO adoption,” said Aldo Lopez, president, Datacom Solutions, Molex. “Combining Teramount’s IP and engineering talent with Molex’s innovative portfolio, manufacturing scale, supply-chain expertise and systems know-how gives customers an integrated, high-volume path to deploy scalable CPO.”

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Revolutionizing Silicon Photonics Manufacturing

Traditional active alignment methods are often costly and difficult to scale. In contrast, Teramount’s passive, detachable coupling supports larger assembly tolerances and standard semiconductor-grade wafer-level processes. This “plug-and-play” approach allows for post-reflow fiber connectivity and in-field serviceability, which drastically improves system yield and operational reliability for data center operators.

Molex plans to integrate Teramount’s engineering expertise with its own global manufacturing infrastructure to accelerate the production of TeraVERSE and establish new industry performance benchmarks.

“Harnessing Molex’s global scale and system-level expertise with Teramount’s innovation expertise and detachable, wafer-level coupling technology creates a real pathway for scalable, high-density CPO,” said Hesham Taha, CEO and co-founder of Teramount. “Joining forces with Molex will enable us to accelerate delivery of a manufacturable, serviceable fiber-to-chip interface that meets the pressing needs of AI and hyperscale data centers.”

A Comprehensive Optical Strategy

The acquisition reinforces Molex’s position as a “one-stop” provider for the AI era’s interconnect needs. The TeraVERSE platform was recently featured as a cornerstone of Molex’s CPO architecture at OFC 2026, showcasing the company’s ability to deliver both industry-leading copper and optical solutions for high-performance computing.

Following the close of the transaction—expected in the first half of 2026-Teramount will continue to operate as a specialized design and engineering center in Jerusalem, supported by Molex’s worldwide optical resources.

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