Business UpdateMay 13, 2026, 07:22 AM
Tower Semiconductor Secures $1.3B SiPho Contracts; Receives $290M Prepayments
AI Summary
Tower Semiconductor announced signing $1.3 billion in Silicon Photonics (SiPho) contracts for 2027 revenue with its largest customers. The company also received $290 million in customer prepayments for capacity reservation, with an even larger contractual commitment for 2028. To support accelerating demand, Tower is expanding its multi-fab SiPho capacity, aiming for $2.8 billion revenue and $750 million net profit in 2028. These agreements strengthen Tower's position in the rapidly expanding optical connectivity market, driven by AI infrastructure.
Key Highlights
- Signed $1.3 billion Silicon Photonics (SiPho) contracts for 2027 revenue.
- Received $290 million in customer prepayments for capacity reservation.
- Secured larger contractual wafer commitment for 2028.
- Expanding multi-fab SiPho capacity to meet accelerating demand.
- Targets $2.8 billion revenue and $750 million net profit in 2028.
- Serves over 50 active SiPho customers across various applications.
- Strengthens position in rapidly expanding optical connectivity market.
Price Impact
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