AI Chip Semiconductor

Israeli chipmaker Tower Semiconductor hits $10b valuation

• ByStartupStory     |    November 11, 2025

Israeli chipmaker Tower Semiconductor has recently soared to a $10 billion valuation, marking a significant milestone in its growth trajectory amid the thriving AI-driven semiconductor market. This leap follows the collapse two years ago of a proposed $5 billion acquisition by Intel, highlighting Tower’s strong independent momentum.

The valuation boost is largely attributed to Tower’s strategic expansion in AI-focused chip production, particularly its leading Silicon Photonics (SiPho) and Silicon Germanium (SiGe) technologies. These advanced semiconductor solutions cater to the high-speed data transmission and energy efficiency demands of artificial intelligence and modern data centers, placing Tower at the forefront of the AI hardware evolution.

In the third quarter of 2025, the company reported revenue of $396 million, showing a 6% increase from the previous quarter, alongside a net profit of $54 million, exceeding market expectations. Tower also projected record fourth-quarter revenue of $440 million, reflecting a 14% year-over-year increase. To support this growth, Tower announced plans to invest an additional $300 million to expand capacity across its global fabrication facilities, including its Israel site.

CEO Russell Ellwanger emphasized Tower’s strong position in core technology areas such as power management, image sensors, and RF mobile chips, each experiencing year-over-year growth. He highlighted the company’s leadership in SiGe and SiPho technologies, critical for optical transceivers supporting data center surging demand, setting the stage for unprecedented top- and bottom-line growth.

This corporate resurgence underscores Tower’s role in addressing critical bottlenecks in AI infrastructure by revolutionizing data processing and transmission. The firm’s innovations in reducing laser count in optical modules and supporting multi-terabit data rates represent a paradigm shift toward scalable, cost-effective AI hardware solutions.

Tower Semiconductor’s remarkable valuation milestone is more than a financial achievement—it exemplifies a broader transformation in semiconductor manufacturing focused on specialized analog technologies essential for the next generation of AI applications. With ongoing investments and technological advancements, Tower is poised for sustained leadership in this high-growth sector, benefiting from both strong customer demand and investor confidence.

The company’s strategic focus and robust financial outlook make it a prime mover in the intersection of AI and semiconductor innovation, signaling a promising future as the AI supercycle continues to reshape technology landscapes globally.

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