The Israel-based firm secures $1bn in Japanese government grants to boost 300mm SiPho and SiGe production by 2027.
Tower Semiconductor will invest $3bn to expand its 300mm Silicon Photonics and Silicon Germanium manufacturing in Japan, supported by $1bn in government grants. The project targets full production by Q4 2027, leveraging the former Panasonic Semiconductor Arai facility and a new site adjacent to Fab 7 in Uozu.
The expansion aims to meet rising demand in AI and data centre technologies. Tower Semiconductor forecasts $3.6bn in revenue and $1.2bn in net profit for 2028, based on the updated growth outlook. The dual-track approach includes repurposing existing capacity and building a new 300mm facility.
The move aligns with Japan’s push to strengthen its semiconductor supply chain amid global competition. No immediate market reaction was disclosed.