MIGDAL HAEMEK, Israel, July 14, 2026 – Tower Semiconductor, a leading high-value analog semiconductor foundry, announced that, with support from the Japanese government, it will launch a dual-track strategic capacity expansion plan, focusing on increasing production capacity for 300mm silicon photonics (SiPho), silicon-germanium (SiGe), and advanced packaging. The total investment for the project is approximately $3 billion, with the Japanese government providing a subsidy of $1 billion. The first phase will involve renovating the former Fab 6 facility in Niigata Prefecture, Japan, to establish a 12-inch silicon photonics and advanced packaging production line, with full mass production expected in the fourth quarter of 2027. The second phase will see the construction of a new 12-inch wafer fab adjacent to the Fab 7 facility in Uozu, Toyama Prefecture, with profits expected to start contributing in 2029. This expansion aims to meet the growing demand for high-speed optical interconnect technologies in emerging applications such as AI and data centers, while also supporting the development of next-generation high-speed optical interconnect technologies. Based on the growth prospects brought about by the first phase of expansion, Tower has simultaneously updated its business development goals, planning to achieve $3.6 billion in revenue and $1.2 billion in net profit by 2028.