Analog semiconductor foundry Tower Semiconductor officially announced a strategic restructuring of its Japan operations on March 25, 2026. The restructuring involves two key wafer fabrication facilities currently operated by TPSCo (Tower Partners Semiconductor Co.) — the 300mm Fab 7 located in Uozu City, Toyama Prefecture, Japan, and the 200mm Fab 5 situated in Tonami City within the same prefecture.

Under the framework agreement signed by both parties, upon completion of the restructuring, Tower will wholly own all manufacturing equipment, operational systems, employee teams, and business activities of 300mm Fab 7 through a newly established Japan-based wholly-owned subsidiary. Concurrently, its long-term partner Nuvoton Technology will assume full ownership of 200mm Fab 5 through its subsidiary NTCJ (Nuvoton Technology Corporation Japan).

Transaction Terms and Timeline

The transaction consideration arrangement for this strategic restructuring indicates that NTCJ will pay Tower a cash consideration of $25 million on the closing date. The targeted closing date is set for April 1, 2027, though the ultimate completion of the transaction remains subject to customary closing conditions and approval from relevant regulatory authorities.

Notably, as an integral component of the agreement, Tower has secured an option to purchase the existing buildings and land of Fab 7, with the additional right to acquire adjacent land parcels under pre-agreed terms, thereby establishing a foundation for subsequent capacity expansion.

Business Continuity and Customer Assurance Mechanisms

To ensure smooth operational transition during the restructuring period, both parties have committed to entering into mutual long-term supply agreements to guarantee uninterrupted service for their respective existing customer bases. Specifically, Tower customers currently served through Fab 5 (200mm) and Nuvoton customers currently served through Fab 7 (300mm) will experience no disruptions at the supply chain or operational levels.

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