TSEM · Tower Semiconductor Ltd.

Tower Semiconductor announced the signing of silicon photonics (SiPho) customer contracts totaling $1.3 billion in revenue for 2027, along with $290 million in customer prepayments for capacity reservation. The company also disclosed even larger contractual commitments for 2028, with associated prepayments due by January 2027. These agreements underscore Tower's market leadership in SiPho technology, which is critical for AI-driven optical connectivity. The company is ramping capacity to achieve its 2028 model of $2.8 billion revenue and $750 million net profit. Management highlighted the depth of strategic partnerships and customer confidence in Tower's multi-generational SiPho roadmap. The announcement reflects strong demand from over 50 active customers across various SiPho applications, positioning Tower to benefit from the accelerating AI infrastructure growth.