Revenue rose 33% year on year as the Israeli foundry pointed to demand for high-speed connectivity technologies. Its fourth-quarter guidance and silicon photonics target remain forward-looking.
Tower Semiconductor reported revenue of $526 million for the third quarter of 2026, up from $396 million a year earlier. Gross profit rose to $179 million from $93 million. The company also guided to fourth-quarter revenue of $600 million, plus or minus 5%. The guidance is a forecast, separate from the results already recorded.
According to Tower, demand for infrastructure technologies is driving growth in its high-speed connectivity business. The company highlighted silicon photonics, used to manufacture photonic integrated circuits, and silicon-germanium processes used in high-speed communications components. Both have roles in moving data across increasingly large computing systems, where bandwidth and power consumption are critical design constraints.
Chief Executive Russell Ellwanger said Tower is targeting an annualized silicon photonics revenue run rate of $1.1 billion in the fourth quarter. That figure describes a target based on a future quarterly pace; it is not annual revenue already earned. He also said the fourth-quarter guidance would put full-year 2026 revenue at about $2 billion if achieved.
Tower is investing in additional manufacturing capacity. The company said its 300 mm expansion in Japan is progressing ahead of schedule and that customer contracts are being extended through 2029. The announcement does not break down the quarter’s growth by fab, so the reported increase should not be attributed entirely to its Israeli operations.
The results show growth that has already reached Tower’s income statement. The next measure of its silicon photonics strategy will be how quickly forecast demand and customer commitments translate into qualified capacity and recorded revenue.
