Tower says Japan capacity buildout is ahead of schedule as contracts extend into 2029
Tower Semiconductor says its capacity investments, including the Track-1 Japan 300 mm buildout, are progressing ahead of schedule, with customer contracts being extended through 2029. The update accompanies its third-quarter results, with chief executive Russell Ellwanger attributing growth in the high-speed connectivity business to demand for silicon photonics and silicon germanium processes. [1]
The manufacturing programme was announced in July and has two tracks. The first repurposes the Arai site, formerly Fab 6, for 300 mm silicon photonics and advanced packaging while maximising output from Fab 7 in Uozu. At the time, Tower expected full production readiness during the fourth quarter of 2027. [2]
The second track involves a further 300 mm manufacturing facility adjacent to Fab 7, intended to expand silicon photonics and SiGe capacity. The July plan envisaged approximately $3 billion of company investment alongside $1 billion in Japanese government grants. [2]
The latest written update describes capacity-investment progress as “ahead of schedule” without giving a revised readiness date or naming the customers behind the contract extensions. [1]
Sources
- Tower Semiconductor, third-quarter update and customer contract extensions, 2 November 2026
- Tower Semiconductor, original Japan dual-track expansion announcement, 14 July 2026, background
A close view of an electronic pattern. Illustrative macro photograph, not Tower’s Japan facilities or a verified 300 mm wafer. Photo: wu yi / Unsplash. Image source. Licence.
