Tower Semiconductor (TSEM) said Wednesday it signed silicon photonics customer contracts representing $1.3 billion in expected 2027 revenue and received $290 million in customer prepayments tied to capacity reservations.

The company said it also secured substantially larger contractual wafer commitments for 2028, with additional prepayments expected by January 2027.

The agreements reflect rising demand for its silicon photonics technology driven by AI infrastructure growth and support its target of $2.8 billion in revenue and $750 million in net profit by 2028, the company added.

Tower Semiconductor shares were up more than 14% in premarket activity.

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