Compute · Chip Manufacturing · published 2026-09-25T00:00:00+00:00 · via Tom's Hardware

Tower and Japan to put $4B into optical chip manufacturing expansion

Tower Semiconductor and Japan's government will jointly invest $4 billion to expand Tower's Japanese fabs for optical-connectivity chips. The plan converts an idle 200mm fab to 300mm for silicon photonics and advanced packaging, expands an existing 300mm line, and adds another 300mm fab, aiming for 45,000 300mm wafers per month by 2029. The first phase is expected to be production-ready in Q4 2027.

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EXPANDED:

Tower and Japan’s government will share a $4 billion investment to reshape Tower’s Japanese fabs into an optical-connectivity manufacturing hub. The first track converts an unused 200mm facility in Arai into 300mm production for silicon photonics and advanced optical packaging, while also raising output at an existing 300mm site in Uozu.

A parallel second track adds another 300mm fab beside the Uozu facility. Together, these moves target 45,000 300mm wafers monthly by 2029, roughly 40 times 2025 capacity, with about 200 new hires. Track One should be production-ready in Q4 2027; Track Two is expected to contribute materially in 2029. Tower accounts for over 80% of outsourced production for server optical-communication chips and serves

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This summary is Al-enhanced to contain extended analysis and broader social context. The original is {NAME); the linked article is the authoritative source. Original headline: “Tower Semiconductor to invest $4 billion in Japanese ops to set up massive optical connectivity hub.” Browse more stories.