Tower Assumes Japan Fab 7
Tower Semiconductor has assumed full control of its Japan Fab 7 and is pushing into AI data‑center optics and silicon photonics while embroiled in a patent fight with GlobalFoundries. The move signals a new potential supplier track for AI optics but also highlights escalating IP and legal risk in capacity plays. (simplywall.st)
Tower’s announced Japan restructuring targets a closing date of April 1, 2027 and will place Fab 7 under a wholly owned Japanese subsidiary, with an option to purchase the existing Fab 7 building and adjacent land for expansion contingent on METI subsidy approval. (towersemi.com) Management is targeting a fourfold increase in combined Uozu 300mm capacity once the adjacent expansion is completed, and the company says photonics technologies are already qualified and shipping in volume from F7 Uozu with shipment increases slated to begin as each new tool arrives. (towersemi.com) Tower announced a collaboration with NVIDIA on February 5, 2026 to scale 1.6‑terabit data‑center optical modules aligned to NVIDIA networking protocols, a program the company says doubles prior silicon‑photonics data rates for AI infrastructure. (towersemi.com) Earlier this year Tower also signed a January 5, 2026 collaboration with LightIC to apply its silicon‑photonics foundry platform to FMCW LiDAR products (LightIC’s Lark™ and FR60™), citing Yole Group forecasts that automotive LiDAR could grow from $859 million in 2024 to $3.6 billion by 2030 (CAGR 24%). (towersemi.com) GlobalFoundries filed multiple U.S. complaints on March 26, 2026 — two in the U.S. District Court for the Western District of Texas and one at the U.S. International Trade Commission — alleging infringement of 11 patents and seeking to block imports of allegedly infringing products into the U.S. market. (money.usnews.com) GlobalFoundries’ filings emphasize a patent portfolio it says exceeds 8,000 patents versus Tower’s fewer than 500, and Tower published a statement rejecting the allegations and saying it will vigorously defend its IP and technology leadership; Tower’s shares fell about 7.45% on the day the suits were announced. (trendforce.com) The TPSCo restructure includes mutual long‑term supply agreements with Nuvoton to avoid customer disruption during the ownership split, and Tower states the Uozu fab is presently cash‑from‑operations positive and targeted to remain so through the multi‑tool build‑out. (towersemi.com)
