Tower Semiconductor announces a $3 billion expansion of its 300mm manufacturing operations in Japan, supported by government grants. Multiple outlets report that the company plans the investment as a multi-track build-out intended to increase capacity for silicon photonics and related optical components used in high-demand applications, including AI data centers. Yahoo Finance and Channel NewsAsia describe the investment as being backed by Japanese government support, with The Next Web adding that the company expects to receive about $1 billion in grants, making the net cost roughly $2 billion. Seeking Alpha reports the company also raises its longer-term targets, including goals for 2028, in connection with the expansion plan. The announcements link the capacity increase to constraints in the market for optical components and highlight Japan’s role in supporting the project through grants. The company’s shares are reported to rise following the announcement in one outlet, reflecting investor reaction to the scale of the plan and the updated outlook.