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Tower Semiconductor announced a strategic restructuring of its Japan operations under TPSCo, taking full ownership of the 300mm Fab 7 facility while Nuvoton's NTCJ takes full ownership of the 200mm Fab 5, supported by mutual long-term supply agreements. The company plans to expand 300mm capacity up to four times current levels, contingent on METI subsidy approval, to meet strong demand in photonics and optical platforms.
Key Takeaways
1Tower to acquire full ownership of TPSCo's 300mm Fab 7 (Uozu) under a new wholly-owned Japanese subsidiary.
2NTCJ (Nuvoton) to acquire full ownership of 200mm Fab 5.
3Transaction targeted to close on April 1, 2027, subject to customary conditions and regulatory approvals.
4Tower has option to purchase existing Fab 7 building and land.
5Contingent on METI subsidy, Tower to purchase adjacent land for expansion to 4x current 300mm capacity.
6Expansion in cash flow positive fab to accelerate photonics volume shipments.