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Tower Semiconductor to quadruple production capacity at Uozu plant following TPSCo reorganization
Wednesday, March 25, 2026 at 06:21 PM
Tower Semiconductor and Nuvoton have announced a reorganization of their joint venture, TowerJazz Panasonic Semiconductor (TPSCo). Under the new structure, Tower will take full control of the Uozu plant and plans to quadruple its production capacity there, while Nuvoton will take over the Tonami facility.
Context
On March 25, 2026, Tower Semiconductor and Nuvoton Technology Corporation Japan (NTCJ) announced a strategic reorganization of their joint venture, TPSCo. Under the new framework, Tower Semiconductor will acquire full ownership and operational control of the 12-inch (300mm) wafer fab in Uozu, Japan. Simultaneously, the 8-inch (200mm) fabrication facilities in Tonami will transition to being a wholly-owned subsidiary of Nuvoton following a $25 million payment to Tower.
This restructuring marks a significant shift for Tower Semiconductor, which plans to quadruple production capacity at the Uozu plant to meet rising demand for advanced analog and power semiconductors. The facility is a critical node for 65nm technologies used in automotive, 5G RF, and AI-driven image sensors. The transaction is expected to officially close on April 1, 2027, following regulatory approvals.
For investors, this move decouples the joint venture assets to align with each company's long-term roadmap. Tower gains an independent, high-volume 300mm footprint in Japan, complementing its existing capacity corridor with Intel, while Nuvoton secures dedicated 8-inch capacity for its industrial and automotive product lines. Both companies have committed to mutual production service agreements to ensure supply continuity for existing customers during the transition.
Sources (6)
Announcement of the Transfer of the Semiconductor ...TOWER SEMICONDUCTOR LTD - 928876 - 2024Tower Semiconductor and Nuvoton Technology ...Tower Semiconductor and Nuvoton Technology CorporationTower Semiconductor Takes Full Control of Uozu 12-Inch ...What is Growth Strategy and Future Prospects of Tower Semiconductor Company? – PortersFiveForce.com
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