Tower Semiconductor runs specialty foundries that make silicon-photonic platforms, photonic integrated circuits and optical components for communications and AI infrastructure.
Tower silicon photonics revenue reached an annualised run rate of USD 680 million in Q2 2026, up 270 percent year over year, with management targeting USD 1 billion by Q4 2026. Tower describes itself as the primary provider of SiPho for 1.6T transceivers and has over 50 active SiPho customers. The commercial structure is unusual for a foundry: USD 1.3 billion of contracted silicon photonics revenue for 2027 signed with its largest customers, USD 290 million of customer prepayments received in Q1 2026 to reserve 2027 capacity, and a larger contractual wafer commitment for 2028. Q2 2026 revenue was a record USD 460 million with 30 percent gross and 20 percent net margins; Q3 guidance of USD 520 million implies an annualised run rate above USD 2 billion. Management raised the 2028 model from USD 2.8 billion revenue and USD 750 million net profit to USD 3.6 billion and USD 1.2 billion. Capacity is being expanded through a USD 920 million capex plan and a METI-supported dual-track Japan expansion repurposing Arai for 300mm silicon photonics by Q4 2027. RF Infrastructure grew 140 percent year over year and was 49 percent of corporate revenue in Q2.
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Tower Semiconductor runs specialty foundries that make silicon-photonic platforms, photonic integrated circuits and optical components for communications and AI infrastructure. Tower silicon photonics revenue reached an annualised run rate of USD 680 million in Q2 2026, up 270 percent year over year, with management targeting USD 1 billion by Q4 2026. Tower describes itself as the primary provider of SiPho for 1.6T transceivers and has over 50 active SiPho customers. The commercial structure is unusual for a foundry: USD 1.3 billion of contracted silicon photonics revenu
Tower Semiconductor ranks 30 of 100 on the AI Infra 100 (November 2026 edition) with a score of 94 out of 100, in Photonic foundry & PIC platforms (Fabrication, memory & packaging). Assessment by Frontier Tech Intelligence.
Tower Semiconductor is based in Migdal Haemek, Northern District, Israel.
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