Tower expands Japan 300mm fab
Tower Semiconductor has announced plans to expand its 300mm manufacturing capacity in Japan following a restructuring of its TPSCo joint venture with Nuvoton Technology Corporation.
Under the agreement, Tower will take full ownership of the 300mm Fab 7 facility in Uozu, while Nuvoton’s Japanese subsidiary will assume full control of the 200mm Fab 5 site. The transaction is expected to close by April 1, 2027, subject to regulatory approvals.
The companies will also enter into long-term reciprocal supply agreements to ensure continuity for existing customers, with no expected disruption to operations.
Tower said the restructuring will strengthen its global manufacturing footprint and support continued growth in high-value analog and photonics technologies.
The planned expansion will build on Fab 7’s existing production base, where photonics technologies are already qualified and shipping in volume.
By leveraging an operational and cash-flow-positive facility, Tower expects to accelerate capacity ramp-up compared to greenfield projects.
The company aims to increase the total capacity at the Uozu site to 300 mm by up to four times, including the development of adjacent land, subject to approval from Japan’s Ministry of Economy, Trade and Industry.
Chief executive Russell Ellwanger said the move marks a strategic step in advancing Tower’s optical and photonics platforms while evolving its partnership with Nuvoton into a long-term supplier and customer relationship.
The expansion is intended to position the company to meet growing demand across applications including optical communications, sensing and other photonics-driven markets.
