Tower Semiconductor to invest $3 billion in Japan

Israeli chipmaker Tower Semiconducto said it will invest $3 billion to bolster chip manufacturing ​in Japan, including $1 billion in grants from ‌the Japanese government.

US-listed shares of the company rose more than 18% in premarket trading after the announcement, which is ​expected to support growing AI and data ​center demand.

The move aims to help the ⁠company’s production of silicon photonics – which uses light ​to move data faster between AI chips – and silicon-germanium ​technology, which enables faster and more energy-efficient semiconductor devices.

“We anticipate ⁠track ​two to provide the path ​for continued growth far beyond 2028,” Tower CEO Russell Ellwanger said. Reuters