(RTTNews) - Tower Semiconductor (TSEM), a foundry for semiconductor solutions, Wednesday announced that it has signed Silicon Photonics or SiPho contract for $1.3 billion for 2027 revenue with its largest customers and receipt of $290 million in customers prepayments for capacity reservation.
The company also has a contractual wafer commitment for 2028 for which additional associated prepayments are due by January 2027.
To support the accelerating demand Tower is in the middle of ramping its capacity to expand its worldwide multi-fab SiPho capacity, with an intent to achieve the targeted model of $2.8 billion revenue with $750 million net profit in 2028.
In pre-market activity, TSEM shares were trading at $258.94, up 17.54% on the Nasdaq.
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