Tower Semiconductor is reorganizing its Japanese operations in a way that could make it one of the more significant beneficiaries of Tokyo’s push to rebuild domestic chip manufacturing. The company announced on March 25, 2026 that it plans to quadruple production capacity at its 300mm facility in Uozu, Japan, contingent on subsidy approval from Japan’s Ministry of Economy, Trade, and Industry.
What’s actually changing at TPSCo
Tower currently operates in Japan through TPSCo, a joint venture with Nuvoton Technology Corporation Japan. The restructuring unwinds that partnership in a fairly clean way: Tower gets full ownership of the 300mm Fab 7, and Nuvoton takes full ownership of the 200mm Fab 5.
To make the math work, Nuvoton will pay Tower $25 million for the Fab 5 transfer. In exchange, Tower sets up a wholly owned Japanese subsidiary to hold Fab 7. Both companies will sign mutual long-term supply agreements to keep existing customers covered through the transition.
The deal is expected to close April 1, 2027, pending regulatory approvals.
