Tower Plans $3 Billion Japan Expansion and Raises 2028 Targets

Tower Semiconductor announced a two-track expansion of its 300-millimeter manufacturing capacity in Japan for silicon photonics, silicon germanium and advanced packaging used in AI data centers and other high-demand applications. The Israeli company expects about $3 billion in net investment after roughly $1 billion in Japanese government grants. The first track will repurpose its Arai facility and expand Fab 7 in Uozu for production readiness in the fourth quarter of 2027; the second would add a neighboring 300-millimeter facility, subject to final agreements. Tower raised its 2028 targets to $3.6 billion in revenue and $1.2 billion in net profit, from $2.8 billion and $750 million.