Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTReutersTue, July 14, 2026 at 12:10 PM GMT+2 1 min readJuly 14 (Reuters) - Israeli chipmaker Tower Semiconductor said on Tuesday it will invest $3 billion to bolster chip manufacturing in Japan, including $1 billion in grants from the Japanese government.U.S.-listed shares of the company rose more than 18% in premarket trading after the announcement, which is expected to support growing AI and data center demand.The move aims to help the company's production of silicon photonics - which uses light to move data faster between AI chips - and silicon-germanium technology, which enables faster and more energy-efficient semiconductor devices.The expansion will occur in two phases, with the first phase involving converting Tower's Arai facility in Japan, formerly Fab 6, for 300-millimeter silicon photonics production, with full operations expected by the fourth quarter of 2027.Following this initial capacity expansion, Tower said it expects its 2028 revenue to reach $3.6 billion and net profit to hit $1.2 billion, compared with its previous expectations of $2.8 billion in revenue and $750 million in net profit.Tower said the second phase will begin simultaneously with the first, to build an additional 300mm manufacturing facility next to the company's existing Fab 7 facility."We anticipate track two to provide the path for continued growth far beyond 2028," Tower CEO Russell Ellwanger said.(Reporting by Jaspreet Singh in Bengaluru; Editing by Vijay Kishore)Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info