Israeli chipmaker Tower Semiconductor has forecasted higher-than-expected fourth-quarter revenue of $387 million, driven by a recovery in demand for its analog and mixed-signal chips, particularly in the automotive and high-performance computing sectors. The company’s U.S.-listed shares rose 7.5% in premarket trading following the announcement. Tower also revealed plans to invest $350 million to increase production capacity, specifically in silicon photonics and silicon germanium technologies. This expansion includes ramping up its 200mm capacity at facilities in San Antonio, Migdal Haemek, and its 300mm facility in Uozu, Japan, though a timeline has not been disclosed.
Despite slowed growth in electric vehicle demand, improved chip sales in China have been helping to reduce inventory levels. Tower Semiconductor’s third-quarter earnings exceeded estimates, with revenues at $371 million and profit per share at 57 cents. Additionally, the company recently partnered with India’s Adani Group on a $10 billion chip project in Maharashtra, expected to produce 40,000 wafers initially.
