Foundry Tower’s results, outlook indicate growth ahead

Mixed-signal, power and photonics foundry Tower Semiconductor Ltd. (Migdal Haemek, Israel) has announced sales up sequentially and annually in 4Q24 and forecast that growth would resume in 2025 and accelerate in the 2H25.

Tower made a net profit of US$55 million on revenues of US$387 million in 4Q24. Sales were up 5 percent from US$371 million in the prior quarter and up 10 percent compared with US$352 million in 4Q23. The net profit was marginally ahead of the net profit of US$54 million in 4Q23.

For the full year 2024 Tower made a net profit of US$$208 million on sales revenue of US$1.44 billion. This compares to a net profit of US$518 million on revenue of US$1.42 billion for the full year 2023.

The net profit for full year 2023 included a payment of US$314 million from Intel for its merger contract termination.

For the 1Q25 Tower forecast revenue in the range of US$358 million plus or minus 5 percent. At the mid-point this would represent about 10 percent year-on-year growth. It would be a sequential fall but that follows a seasonal pattern.

“Our 2025 revenue target is year-over-year growth, with sequential quarter-over-quarter revenue growth, and an acceleration in the second half of the year,” said Tower CEO Russell Ellwanger, in a statement. “This momentum is fuelled by increasing production shipments as our previously announced capacity investments progress through the final stages of customer qualifications.”