Tower Semiconductor to invest $3 billion in Japan, backed by government grants
The dual-track project will expand 300mm silicon photonics, silicon-germanium and advanced packaging capacity as Tower targets 2028 revenue of $3.6 billion.
- On Tuesday, Israeli chipmaker Tower Semiconductor announced a $3 billion investment to bolster chip manufacturing in Japan, including $1 billion in grants from the Japanese government.
- Surging demand for AI and data center applications drives the expansion, which follows Tower's restructuring of its TPSCo venture in Japan to acquire full ownership of its 300mm facility.
- Track one repurposes the Arai facility for 300-millimeter silicon photonics production by the fourth quarter of 2027, while track two constructs a new plant adjacent to Fab 7 in Uozu to maximize output.
- Tower CEO Russell Ellwanger updated 2028 financial targets to $3.6 billion in revenue and $1.2 billion in net profit, up from prior expectations of $2.8 billion and $750 million respectively.
- Japan's initiative aligns with global efforts like the Chips Act to secure advanced manufacturing, though Tower notes risks including construction delays, equipment lead times, and potential grant covenant failures.
15 Articles
15 Articles
Tower Semiconductor puts $3bn into Japan, and Tokyo is paying for a third of it
Tower Semiconductor said on Tuesday it will spend roughly $3bn expanding its 300mm operations in Japan, net of about $1bn in grants from the Japanese government, in a two-track build-out aimed squarely at the optical components that AI data centres are consuming faster than anyone can make them. The announcement, made with the backing of Japan’s […] This story continues at The Next Web
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