(RTTNews) - Tower Semiconductor (TSEM) has signed Silicon Photonics or SiPho contracts for $1.3 billion for 2027 revenue with its largest customers, and the receipt of $290 million in customers prepayments for capacity reservation. The company said this initial commitment is further reinforced by an even larger contractual wafer commitment for 2028 for which additional associated prepayments are due by January 2027.
Tower said it is in the midst of substantial capacity ramp to expand its worldwide multi-fab SiPho capacity, the foundation to achieve the targeted model of $2.8 billion revenue with $750 million net profit in 2028.
In pre-market trading on NasdaqGS, Tower shares are up 12.76 percent to $249.00.
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