Tower Semiconductor (NASDAQ:TSEM) reported record second-quarter 2026 revenue and profitability, citing accelerating demand for silicon photonics and related data-center connectivity products. The facility is intended to support silicon photonics, silicon germanium and related advanced optical packaging applications. Ellwanger said Tower has announced customer contracts representing approximately $1.3 billion in silicon photonics revenue for 2027, with higher growth expected in 2028. Ellwanger said NPO could represent a significant, rather than single-digit, percentage of silicon photonics shipments by the second half of 2027. Tower also entered a multiyear epitaxial wafer supply agreement with IQE for III-V materials used in its silicon photonics roadmap.