The dual-track project will increase Tower’s 300mm Silicon Photonics, Silicon Germanium, and advanced packaging capacity to meet growing demand from AI and data center customers.Japan will provide $1 billion in grants, reducing Tower’s net investment to about $2 billion.First Phase Targets 2027Tower will repurpose its Arai facility, formerly Fab 6, for 300mm Silicon Photonics production and advanced packaging while maximizing output at Fab 7 in Uozu.The company expects full production readiness in the fourth quarter of 2027.Tower also updated its 2028 forecasts to $3.6 billion in revenue and $1.2 billion in net profit.New Facility Supports GrowthThe second phase calls for a new 300mm facility next to Fab 7, subject to final agreements.Tower expects the plant to deliver a multi-fold increase in Silicon Photonics and Silicon Germanium capacity and become highly accretive beginning in 2029.Japan Backs ExpansionTower said the project will strengthen Japan’s semiconductor manufacturing base and supply chain resilience."We are honored and appreciative that the Government of Japan has selected Tower to lead the expansion of these strategically important technologies," CEO Russell Ellwanger said.Ellwanger said the expansion should also reduce qualification and product-transfer risks while supporting customer ramps and growth beyond 2028.TSEM Technical Outlook: Momentum And Key Chart LevelsTower Semiconductor shares have surged 413.83% over the past year and continue to trade firmly above key moving averages.The stock sits about 6.9% above its 20-day simple moving average and 73% above its 200-day SMA, reflecting strong longer-term momentum.The Relative Strength Index (RSI) stands at 57, indicating healthy momentum while remaining below overbought territory. This suggests buying interest is strengthening, with room for further upside before momentum becomes stretched.The 50-day SMA has also crossed above the 200-day SMA, forming a bullish golden cross that supports the stock’s broader uptrend.