US Stock Market Move | Investing $3 billion to strengthen chip manufacturing in Japan, Tower Semiconductor Ltd(TSEM.US) surged more than 10% at the opening of the market.

On Tuesday, Tower Semiconductor Ltd (TSEM.US) surged more than 10% in early trading, with a year-to-date increase of 115%, now trading at $254.35. In terms of news, the company announced on July 14 that it will invest $3 billion to enhance chip manufacturing in Japan, including a $1 billion grant from the Japanese government. The company stated that the first phase will significantly increase the production capacity of 300mm silicon photon devices, and is expected to be fully operational in the fourth quarter of 2027. This phase includes the renovation of the original Fab 6 factory to have 300mm silicon photon device production capacity and advanced packaging capabilities. The second phase, which will be launched simultaneously with the first phase, involves constructing a new 300mm lithography machine factory next to Fab 7. Additionally, Tower has also raised its financial targets for 2028, expecting revenue to reach $3.6 billion (higher than the market's general expectation of $31.7 billion) and net profit to reach $1.2 billion.