# Israeli Company to Invest $3 Billion in Silicon Photonics Production for AI in Japan Japan strengthens its AI chip production leadership through a partnership with Tower Semiconductor. - **Source:** [INCRYPTED](https://brifing.si/source/7cd4625d-3f08-4cc1-983d-4c7d991839ba) - **Published:** 2026-07-15 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/a9089e00-179e-4030-94bb-554ef3984379 ## Japan's Move in AI Chip Production Japan is collaborating with Tower Semiconductor to lead in AI chip production. The company plans to invest $3 billion to develop silicon photonics technology, marking a critical step for AI infrastructure. ## Silicon Photonics Technology Silicon photonics uses light for data transmission, enabling faster communication between AI chips. Tower Semiconductor aims to develop this technology at its facilities in Japan, targeting full-scale production by 2027. ## Japanese Government Support The Japanese government is providing $1 billion in grants to Tower Semiconductor's project. This support is part of the country's strategy to lead in AI and semiconductor technologies. ## Silicon-Germanium Chips Tower Semiconductor aims to produce faster and more energy-efficient chips using silicon-germanium technology. This advancement will provide a significant advantage for AI infrastructure. ## Increased Financial Forecasts With new production capacity, Tower Semiconductor has raised its 2028 revenue forecast from $2.8 billion to $3.6 billion and net profit from $750 million to $1.2 billion, highlighting the project's economic potential. ## Global AI Race Tower Semiconductor's investment is a significant step in the global AI infrastructure race. The company aims to compete with tech giants like Samsung and Meta to achieve leadership in this field. ## Sources covering this story - https://incrypted.com/yzraylskaja-kompanyja-razvernet-v-japonyy-proyzvodstvo/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._