Tower Semiconductor's stock surged 7.94% during the night session, marking a significant rebound in its trading activity.

The sharp increase follows a formal statement issued by the company's core customer, Innolight, which characterized previously circulated rumors regarding yield issues with 1.6T silicon photonics chips at the Fab 9 factory as maliciously fabricated false information intended to manipulate stock prices. The customer explicitly stated it had never mentioned such risks in its official communications.

Tower Semiconductor's representatives added that process tuning challenges are a normal part of industry operations and do not impact long-term customer relationships or capacity expansion plans, noting that yields for 800G silicon photonics chips have been adjusted to satisfactory levels. The decisive rebuttal effectively dispelled the market concerns that had previously weighed on the stock's performance.