Molex has signed an agreement to acquire Teramount Ltd., aiming to accelerate the commercialization of co-packaged optics (CPO) for AI, cloud, and 5G infrastructure. The deal centers on integrating Teramount’s detachable fiber-to-chip interconnect technology into Molex’s broader optical portfolio, addressing one of the key bottlenecks in scaling CPO architectures.
Teramount’s TeraVERSE® platform introduces a passive, self-aligning optical coupling approach at the wafer level, designed to simplify the interface between optical fibers and silicon photonics chips. Unlike traditional active alignment techniques, which require precise and often costly positioning during assembly, Teramount’s passive alignment supports larger tolerances and is better suited for high-volume semiconductor manufacturing. The detachable design also enables field serviceability—an important operational consideration for hyperscale data center deployments.
Molex plans to combine Teramount’s intellectual property and Israel-based engineering team with its own global manufacturing scale and optical interconnect expertise. The companies previously collaborated commercially, including work highlighted at OFC 2026, and the acquisition follows Koch Disruptive Technologies’ lead role in Teramount’s $50 million Series A funding in 2025. Teramount will continue operating from its Jerusalem design center following the transaction, which is expected to close in the first half of 2026 pending regulatory approvals.
- Acquisition targets scalable fiber-to-chip connectivity for co-packaged optics (CPO)
- Teramount’s TeraVERSE® uses passive, wafer-level self-alignment for manufacturability
- Detachable interface enables field serviceability in hyperscale environments
- Builds on prior collaboration and Koch-backed Series A investment in 2025
- Jerusalem-based R&D center to remain operational post-acquisition
- Focus on enabling high-density, energy-efficient optical interconnects for AI workloads
“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,” said Aldo Lopez, president, Datacom Solutions, Molex.
| Profile: Teramount Ltd. | |
| Headquarters | Jerusalem, Israel |
| Founded | 2013 |
| Founders | Dr. Hesham Taha (CEO), Dr. Avi (Abraham) Israel (CTO) — both PhDs in Applied Physics, Hebrew University |
| Chairman | David (Dadi) Perlmutter (former Intel Architecture Group leader; Mellanox board) |
| Core Technology | Universal Photonic Coupler enabling passive, detachable fiber-to-chip optical interconnects for silicon photonics |
| Key Products | Photonic-Plug (fiber connector), Photonic-Bump (wafer-level interface), TeraVERSE™ (CPO detachable solution) |
| Alignment Approach | Passive self-alignment using 3D optical structures; eliminates need for active alignment equipment |
| Assembly Tolerance | ~±30 µm alignment tolerance for low-loss coupling (company-reported) |
| Optical Performance | <0.5 dB coupling loss target; <1.5 dB total per channel (company-reported) |
| Fiber Density | 32+ fibers @ 127 µm pitch (single row); 64+ fibers via dual-layer “planar separation” |
| Manufacturing Model | Wafer-level integration compatible with CMOS fabs and OSAT flows; supports 2.5D/3D packaging and TSVs |
| Key Differentiator | Detachable, field-serviceable fiber interface for CPO — avoids permanent fiber attach and improves yield and repairability |
| Target Markets | AI infrastructure, hyperscale data centers, HPC, telecom, sensing |
| Funding | ~$58M+ total; $50M round (2025) led by Koch Disruptive Technologies with AMD Ventures, Samsung Catalyst Fund, Hitachi Ventures, Wistron |
| Key Partners | Tower Semiconductor, GlobalFoundries, Molex |
| Strategic Role in CPO | Addresses fiber attach, manufacturability, and serviceability — key barriers to high-volume CPO deployment |
🌐 Analysis: This acquisition underscores growing industry focus on solving the packaging and interconnect challenges that have slowed widespread CPO adoption. While major players such as Broadcom and Marvell have advanced CPO switch and DSP platforms, the fiber attach problem—particularly around manufacturability and serviceability—remains a critical barrier. Teramount’s passive alignment approach directly targets this gap, positioning Molex to play a more central role in the emerging CPO supply chain.
🌐 Analysis: The move also reflects broader vertical integration across the optical ecosystem as vendors align silicon photonics, packaging, and interconnect technologies for AI-scale deployments. Molex’s backing from Koch Industries, combined with its global manufacturing footprint, could accelerate commercialization timelines for CPO systems, especially as hyperscalers push toward 800G, 1.6T, and future optical interconnect architectures.
