Tower Semiconductor Gains Full Control of 300mm Fab7, Nuvoton Acquires 200mm Fab5
Tower Semiconductor will assume ownership of its 300mm Uozu Fab7 facility on April 1, 2027, plus an option to acquire adjacent land, aiming to quadruple capacity and accelerate photonics shipments upon each new tool installation. Nuvoton Japan will take over the 200mm Fab5 under long-term supply pacts preserving customer continuity.
1. Strategic Restructuring of Japanese Operations
Tower Semiconductor and Nuvoton Technology Japan have agreed to restructure their joint TPSCo venture, with Tower assuming sole ownership and operational control of the 12-inch (300mm) Uozu Fab7 and Nuvoton taking full ownership of the 8-inch (200mm) Fab5. The transaction will close on April 1, 2027, subject to regulatory approvals.
2. Full Ownership and Capacity Expansion
Under the new structure, Tower’s wholly owned Japanese subsidiary will control all Fab7 manufacturing assets and has an option to purchase the existing building and adjacent land. Contingent on Japan’s Ministry of Economy, Trade and Industry subsidy approval, Tower plans to expand 300mm capacity fourfold, targeting immediate increases in photonics volume shipments as each new tool arrives.
3. Supply Agreements and Customer Continuity
Both companies will enter mutual long-term supply agreements to ensure uninterrupted wafer processing and assembly services. Tower customers currently served by Fab5 and Nuvoton customers served by Fab7 will see no operational disruptions throughout the transition and expansion period.
4. Financial and Operational Implications
The Uozu 300mm facility is cash-positive and is expected to remain so during the build-out, contrasting with greenfield expansions that incur high fixed costs and lengthy qualification cycles. The restructuring strengthens Tower’s differentiated analog and photonics platforms while optimizing its Japanese footprint and preserving global customer supply chains.