Tower Semiconductor announces capacity expansion in Japan
Track one adds new 300mm Silicon Photonics capacity, with full production readiness expected during the fourth quarter of 2027. It consists of repurposing the Arai facility for 300mm Silicon Photonics capacity and advanced packaging capabilities.
Tower Semiconductor, an Israel-based foundry of high-value analog semiconductor solutions, has announced a parallel dual-track strategic expansion of its 300mm Silicon Photonics (SiPho), Silicon Germanium (SiGe), and advanced packaging capabilities in Japan, with support from the Government of Japan.
The expansion is designed to support the rapidly growing long-term customer demand, substantially increasing the company’s manufacturing capacity and extending its technology leadership, Tower Semiconductor said in a press release.
“Since becoming the majority owner of the former Panasonic Semiconductor manufacturing operations, now TPSCo, this group has established a reputation for transforming cutting-edge innovation into high-volume manufacturing excellence,” said Russell Ellwanger, Tower’s CEO. “For these reasons, with the support of the Government of Japan, we will create a globally differentiated, advanced R&D and manufacturing center of excellence for Silicon Photonics, Silicon Germanium, and advanced optical packaging of very significant scale.”
Track one adds significant new 300mm Silicon Photonics capacity, with full production readiness expected during the fourth quarter of 2027. It consists of repurposing the Arai facility, formerly Fab 6, for 300mm Silicon Photonics capacity and advanced packaging capabilities, maximizing the company’s Fab 7 300mm output in Uozu. Reflecting upon the track one growth outlook, Tower is updating its business model, targeting to achieve USD 3.6 billion of revenue and USD 1.2 billion of net profit in 2028.
Track two will commence in parallel with the first track and consists of constructing an additional 300mm manufacturing facility, adjacent to Fab 7, following signing and closing of related agreements, the company said.
