Tower Semi Plans $3B Japan Expansion, Targets $3.6B Revenue by 2028
TSEM has more than doubled off its 52-week low of $43.12.
Summary
Tower Semiconductor announced a dual-track capacity expansion in Japan, backed by $1B in government grants, with a net investment of $3B. The plan repurposes the Arai facility for 300mm Silicon Photonics and advanced packaging, and constructs a new fab adjacent to Fab 7, targeting full production readiness by Q4 2027. Management updated its 2028 business model to $3.6B revenue and $1.2B net profit, signaling confidence in accelerating demand from AI and data center optical connectivity. This follows a series of strategic moves including a $1.3B silicon photonics customer win and a multi-year InP supply agreement with IQE. The scale of the investment and the explicit long-term financial targets materially raise the growth outlook.
At the time of this announcement, TSEM was trading at $229.68 on NASDAQ in the Technology sector, with a market capitalization of approximately $25.7B. The 52-week trading range was $43.12 to $319.94. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.