Gaota Semiconductor is restructuring its Japanese operations and plans to expand production at its 12-inch wafer fab

Recently, Tower Semiconductor announced plans to restructure its Japanese operations. Under the plan, Tower will hold the 300mm (12-inch) Fab 7 through its wholly-owned subsidiary in Japan, while Japan’s New Tang Technology will fully own the 200mm Fab 5. The transaction is expected to be completed on April 1, 2027.

Currently, both facilities are operated by TPSCo, a joint venture in which Tower holds a 51% stake and NTT Semiconductor holds a 49% stake.

Tower holds an option to acquire the existing buildings and land of Fab 7. After formally submitting an application and obtaining subsidy approval from Japan’s Ministry of Economy, Trade and Industry, the company will purchase adjacent land to expand its 300mm production capacity. The company maintains a robust financial position, with a current ratio of 6.48 and cash on hand exceeding liabilities, providing strong support for its large-scale expansion plans. Tower aims to quadruple the total production capacity of the Uozu 300mm facility once the existing site and planned expansion projects are fully operational.

Tower’s photonic technology has already been validated at the Uozu facility and is now in mass production. The company expects shipments of photonic products to grow rapidly as new equipment is progressively installed in the expanded facility.

Tower specializes in analog semiconductor foundry services, serving sectors including consumer electronics, industrial, automotive, mobile devices, infrastructure, medical, and aerospace and defense.

In the fourth quarter of 2025, driven by steady growth in shipments of niche server-related applications such as silicon photonics (SiPhotonics) and silicon germanium (SiGe), Tower Semiconductor’s revenue for the quarter increased by 11.1% quarter-over-quarter to $440 million. The company’s market share ranking rose to seventh place, surpassing Vanguard and Nexchip.