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Tower Semiconductor announced a strategic capacity expansion in Japan supported by the Government of Japan (METI)
TSEMTower Semiconductor Ltd
Tower Semiconductor announced a strategic capacity expansion in Japan supported by the Government of Japan (METI). The dual-track expansion includes repurposing the Arai facility for 300mm Silicon Photonics and advanced packaging, with full production readiness expected in Q4 2027. A second track involves constructing a new 300mm facility adjacent to Fab 7 to increase Silicon Photonics and Silicon Germanium capacity for AI and data center applications, expected to be highly accretive by 2029. The total investment is approximately $3 billion, offset by $1 billion in Japanese government grants. The company updated its 2028 business model targets to $3.6 billion in revenue and $1.2 billion in net profit. Tower Semiconductor is a semiconductor foundry providing analog solutions.