Tower Semiconductor, a major Israeli contract semiconductor manufacturer, announced in July this year plans to build a new semiconductor manufacturing plant in Uozu, Toyama Prefecture. Investment over the next 5 years is expected to total approximately ¥500 billion. The company aims to expand its equipment next year, increase production capacity to 9 times its current level in 2025, and raise sales to more than double their current level in 2028.
The Uozu plant was established as a joint venture with Panasonic and currently serves as Tower's main production facility. Tower acquired full ownership of the plant in March this year and formally announced its production expansion plan.
CEO Russell Ellwanger (ラッセル・エルワンガー) indicated that the Uozu plant's yield is high at 94%, and assessed that new equipment, which normally takes 2 to 3.5 years to bring online, could begin operating in approximately 3 months.
As a second phase, the company plans to build an additional plant in Uozu and expand production capacity from 2029 onward to approximately 5 times the level of the first phase. It also plans to focus on developing local talent and expanding employment, and said it considers securing talent in Toyama a priority.
The investment decision in Toyama Prefecture is attributed to the strength of its technological capabilities and talent base, as well as the local framework for collaboration. The company also indicated that additional investment could be possible with future government cooperation.