Tower Semiconductor to Invest $3 Billion in Japan for AI Chip Capacity, Backed by $1 Billion in Government Support

According to Calcalist, Tower Semiconductor announced on July 14 a $3 billion investment in Japan, supported by approximately $1 billion in government grants, to expand 300mm silicon photonics, silicon germanium, and advanced optical packaging capacity for AI and data-center applications. The Israeli chipmaker will convert its Arai facility (formerly Fab 6) into a production site for 300mm silicon photonics and advanced packaging, while increasing output at Fab 7 in Uozu. Tower expects full production readiness by the fourth quarter of 2027.
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