Tower Semiconductor

Tower Semiconductor is a specialty foundry making analog, RF, and silicon photonics wafers, serving customers in automotive, industrial, and increasingly optical-interconnect chips relevant to AI datacenters. Intel attempted to acquire Tower in 2022-2023 before the deal was terminated over regulatory delays. FY2025 revenue was $1.57 billion, up 9% year-over-year. In 2026 Tower announced a major expansion of 300mm silicon-photonics, silicon-germanium and advanced-packaging capacity in Japan for AI data-center demand; that capacity had not been built as of August 2026.

Ecosystem functionLeading specialty foundry for silicon photonics wafers, an increasingly important input for AI datacenter optical interconnects.

Business modelContract wafer manufacturing (specialty foundry)