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The U.S.-listed shares of the company were up 7.5% in premarket trading.
The company said the investment will expand capacities for its silicon photonics, used in autonomous vehicles, and silicon germanium, used in wireless communication and high-performance computing systems.
However, the company did not disclose the time frame for this investment.
The plan also includes the qualification and ramp-up of 200mm capacity, both in San Antonio and Migdal Haemek, Israel, and in its 300mm facility in Uozu, Japan.
The company makes analogue and mixed-signal semiconductors used mainly in automobiles for “fabless” firms, which outsource chip manufacturing.
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Slowing growth in demand for electric vehicles has kept inventory levels for chips used in the automotive industry at elevated levels. However, Texas Instruments – a bellwether for analogue chip demand – indicated last month that improving demand from the Chinese automotive market is helping drive down chip inventory levels.
Tower Semiconductor expects to report fourth-quarter revenue of $387 million, with an upward or downward range of 5%, beating analysts’ expectations of $379.2 million, data compiled by LSEG shows.
In September, Tower Semiconductor tied up with India’s Adani Group to invest Rs 839.47 billion ($10 billion) for a project in India’s western state of Maharashtra. The project will initially have a capacity of 40,000 wafers.
It reported third-quarter revenues of $371 million, which was ahead of Wall Street estimates of $370.3 million. Its quarterly profit was 57 cents per share, compared with analysts’ estimates of 53 cents per share.
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