Tower Semiconductor Secures $1.3 Billion AI Chip Deals, $290M Prepayments
TSEM•Tower Semiconductor secured $1.3 billion in Silicon Photonics AI chip contracts for 2027 and received $290 million in prepayments to reserve capacity. The foundry is ramping multi-fab SiPho capacity to support over 50 customers and is targeting $2.8 billion revenue with $750 million net profit by 2028.
1. $1.3 Billion Silicon Photonics Contracts
Tower Semiconductor signed $1.3 billion in SiPho contracts for 2027 revenue with its largest customers, backed by $290 million in prepayments for capacity reservation. This initial commitment covers wafer production for over 50 active customers across high-bandwidth AI and optical connectivity applications.
2. Capacity Expansion and 2028 Financial Targets
To meet surging demand, the foundry is ramping its global multi-fab SiPho capacity and investing in advanced photonics platforms. Management aims to reach $2.8 billion in revenue and $750 million in net profit by 2028 as AI infrastructure growth accelerates.
