Tower Semiconductor, an Israeli foundry, announced on Wednesday that it plans to invest another $150 million to increase production capacity. Driven by demand growth, the company predicts that this year's revenue will hit a record high.

Since it was reported that the 8-inch wafer production capacity was tight in mid-2020, news about the shortage of chips has been continuous, involving mobile phones, game consoles, security and other market areas. Chip manufacturers are seeing a surge in demand because the economy is recovering from the pandemic faster than expected. Among them, the most severe "core shortage" situation is the automotive industry.

Tower, which specializes in manufacturing analog chips used in automobiles, medical sensors, and power management, said it will invest in equipment at its manufacturing plants in Israel, Texas, and Japan to increase the production capacity of 200 and 300 mm wafers.