DealsMay 13, 2026, 07:07 AM
Tower Semiconductor Signs $1.3B Silicon Photonics Contracts for 2027
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. These initial commitments are reinforced by even larger contractual wafer commitments for 2028, with additional prepayments due by January 2027. Tower is expanding its multi-fab SiPho capacity to support accelerating demand, targeting $2.8 billion revenue and $750 million net profit in 2028.
Key Highlights
- Signed $1.3 billion in Silicon Photonics contracts for 2027 revenue.
- Received $290 million in customer prepayments for capacity reservation.
- Secured larger contractual wafer commitments for 2028.
- Aims for $2.8 billion revenue and $750 million net profit in 2028.
- Supports over 50 active SiPho customers.