Tower Semiconductor signals optics-driven growth as restructuring boosts capacity outlook

Shares of Tower Semiconductor (NASDAQ:TSEM) fell more than 6% in New York trading on Thursday, caught in a broader selloff across chip stocks, even as analysts pointed to new expansion plans that could drive longer-term upside. Analysts at Wedbush Securities said Tower's plans to expand cleanroom capacity for silicon photonics (SiPh) and silicon-germanium (SiGe) production suggest growing confidence that demand will exceed its existing optics-focused investments.