Slow Recovery Hinders Foundry Tower Progress

Tower Semiconductor recently announced its 1Q24 financial results, reporting revenue of US$327 million. While this figure slightly exceeded the company's previous guidance, it represented a 7.1 percent decrease from the prior quarter and an 8.1 percent decline compared to the same quarter the previous year.

The company also disclosed a net profit of US$45 million, indicating a solid performance despite the revenue decline. Russell Ellwanger, the CEO of Tower Semiconductor, expressed optimism about the future, stating, "As we move through the year, we remain focused on and confident about continuous growth, driven by the performance of several of our differentiated technologies, critical to present market needs with market leader customers who are true partners."

Ellwanger added, "This growth is against the landscape of a not yet robust market. Recent customer forecasts give reason to believe market recovery is forthcoming." The company's strategic focus on key technologies and strong partnerships with leading customers positions Tower Semiconductor for future success in a challenging market environment.

Looking ahead to the second quarter of 2024, Tower Semiconductor anticipates revenue of US$350 million plus or minus 5 percent. At the mid-point of this guidance, the projected revenue would be slightly below the US$357 million reported in the second quarter of 2023. Despite the challenges in the market, Tower Semiconductor remains committed to driving growth and delivering value to its stakeholders.

For more information and insights on the semiconductor industry, visit www.futurehorizons.com. In related news, industry analysts have revised their forecasts following Tower Semiconductor's 1Q24 results, with some expressing caution about the overall chip market outlook. Future Horizons has issued warnings regarding a potential slowdown in the chip market rebound, while TSMC has adjusted its semiconductor and foundry forecasts for the year 2024.