Tower Semiconductor Targets Capacity Growth with Japan Fab Expansion
Planned 300mm output increase and full facility ownership support long-term demand in high-value markets
Tower Semiconductor has announced plans to increase its 300mm wafer production capacity in Japan as part of a broader strategy to meet rising customer demand and strengthen its position in specialised semiconductor technologies.
The initiative forms part of a restructuring of the company’s Japanese operations, currently organised under TPSCo, a joint venture with Nuvoton Technology Corporation Japan. Under the proposed arrangement, Tower will assume full ownership of the 300mm fabrication facility (Fab 7), while Nuvoton will take control of the 200mm facility (Fab 5).
Both companies intend to enter into long-term supply agreements to ensure continuity for existing customers, with no expected disruption to current operations during the transition.
As part of the expansion plan, Tower is considering acquiring additional adjacent land—subject to approval and potential support from Japan’s Ministry of Economy, Trade and Industry—to further scale production. The company aims to significantly boost output, targeting up to four times the current 300mm capacity at its Uozu site once the expansion is completed.
The move is also expected to enhance Tower’s capabilities in areas such as optical and photonics technologies, supporting growth across high-value applications including automotive, industrial and communications sectors.
The transaction is anticipated to be finalised by April 2027, subject to regulatory approvals and standard closing conditions.
