Tower Semiconductor to Take Full Control of Japan 300mm Fab and Plan Major Capacity Expansion

Tower ( (TSEM) ) has issued an update.

On March 25, 2026, Tower Semiconductor announced a strategic restructuring of its Japan operations, under which it will take full ownership of the 300mm Fab 7 through a new wholly owned Japanese subsidiary, while Nuvoton Technology Corporation Japan will assume full ownership of the 200mm Fab 5. The companies plan mutual long-term supply agreements to avoid disruption for existing customers, and the transaction is targeted to close on April 1, 2027, subject to customary conditions and regulatory approvals.

Tower intends to expand 300mm capacity in Uozu, Japan, including potential adjacent land purchase contingent on subsidy approval from Japan’s Ministry of Economy, Trade and Industry, aiming to quadruple current 300mm output over time. Because Tower’s photonics technologies are already qualified and shipping from Fab 7, management expects capacity additions to ramp quickly and maintain positive cash generation, reinforcing the company’s differentiated optical and photonics platforms and strengthening Japan’s semiconductor ecosystem.

TPSCo, previously 51%-owned by Tower and already integrated into its global operations, will effectively be split so that Tower consolidates the higher-value 300mm operations and Nuvoton focuses on 200mm, reshaping their relationship from joint owners to long-term supplier and customer partners. The move is positioned as a profitable expansion that supports strong customer demand, enhances Tower’s global strategic footprint, and provides a more capital-efficient alternative to greenfield or acquisition-driven capacity builds.

The most recent analyst rating on (TSEM) stock is a Buy with a $180.00 price target. To see the full list of analyst forecasts on Tower stock, see the TSEM Stock Forecast page.

Spark’s Take on TSEM Stock

According to Spark, TipRanks’ AI Analyst, TSEM is a Outperform.

The score is driven primarily by strong technical momentum and solid financial quality (especially the conservative balance sheet). Earnings-call commentary adds support via upbeat guidance and a largely pre-reserved capacity ramp, while the main offset is a stretched valuation (high P/E) alongside recent free-cash-flow weakness and execution/contract risks.

To see Spark’s full report on TSEM stock, click here.

More about Tower

Tower Semiconductor Ltd. is a leading foundry of high-value analog semiconductor solutions, providing technology, development, and process platforms for markets including consumer, industrial, automotive, mobile, infrastructure, medical, and aerospace and defense. The company offers customizable process platforms such as silicon photonics, SiGe, BiCMOS, RF CMOS, CMOS image sensors, power management, and MEMS, and operates fabs in Israel, the U.S., Japan, and a shared 300mm facility in Italy.

Average Trading Volume: 2,318,491

Technical Sentiment Signal: Buy

Current Market Cap: $19.24B

Find detailed analytics on TSEM stock on TipRanks’ Stock Analysis page.