Tower Semiconductor just made one of the largest bets in its history. The Israel-based chipmaker announced a $3 billion expansion of its 300mm semiconductor facilities in Japan, targeting silicon photonics, silicon germanium, and advanced optical packaging, with production set to ramp in late 2027.
The Japanese Ministry of Economy, Trade, and Industry is helping foot the bill, committing $1 billion in grants.
What Tower is actually building
The expansion centers on Fab 7, Tower’s 300mm facility in Uozu, Japan. Tower took full control of that facility after dissolving its joint venture with Nuvoton in a restructuring announced in March 2026, with complete ownership of the fab targeted by April 1, 2027.
Tower is not building speculatively. More than 70% of the new capacity planned under this expansion is already reserved through 2028. The company has also locked in $1.3 billion in silicon photonics revenue contracts for 2027 alone, with $290 million in upfront prepayments already secured from customers.
