Company Overview - Tower Semiconductor is a leading foundry specializing in high-value analog semiconductor solutions, providing technology, development, and process platforms for various markets including consumer, industrial, automotive, mobile, infrastructure, medical, and aerospace and defense [3]. Upcoming Earnings Release - The company will release its first quarter 2025 earnings on May 14, 2025, and will hold a conference call to discuss the financial results and guidance for the second quarter 2025 at 10:00 a.m. Eastern Time [1]. Conference Call Details - The conference call will be available via webcast on Tower Semiconductor's Investor Relations website, and participants must complete a pre-registration form to receive dial-in details and a unique PIN [2].

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Core Insights - Tower Semiconductor and Alcyon Photonics have announced a collaboration to enhance photonics integration for datacom, telecom, and sensing markets, providing silicon-validated photonic building blocks and circuits [1][2][3] Company Overview - Tower Semiconductor is a leader in high-value analog semiconductor foundry solutions, focusing on technology and process platforms for various markets including consumer, industrial, automotive, mobile, infrastructure, medical, and aerospace [6] - Alcyon Photonics specializes in integrated photonics design, delivering high-performance photonic components for advanced optical applications [8] Collaboration Details - The partnership leverages Tower's advanced SiPho platform to develop silicon-proven photonic IP, ensuring high performance, reliability, and manufacturability [2] - Alcyon's design techniques, optimized for Tower's technology, maintain channel drifts below 3 nm despite fabrication variations of up to 30 nm, providing significant competitive advantages [2] - The collaboration aims to deliver CWDM solutions optimized for data center networking and advancements in coherent communications, enhancing bandwidth and scalability [3] Strategic Goals - Tower Semiconductor aims to foster a strong ecosystem to support customer innovation in photonics, reinforcing its leadership in silicon photonics through this partnership [4] - The collaboration is expected to drive the next wave of integrated photonics applications, providing validated, high-performance components [4]

Core Insights - OpenLight and Tower Semiconductor have successfully demonstrated a 400G/lane modulator on Tower's silicon photonics platform, achieving a better than 3.5dB extinction ratio using PAM-4 modulation at a drive voltage of 0.6 volts peak-to-peak [2][3] - The integrated silicon photonics solution supports scalable optical communication architectures from 100G to 400G, addressing the increasing demand for high-speed data transfer in cloud computing, AI, and machine learning applications [3][4] - The collaboration between OpenLight and Tower Semiconductor aims to provide a cost-effective and reliable solution for next-generation optical communication technology, minimizing design complexity and time to market for customers [5][8] Company Overview - OpenLight is a leader in custom PASIC chip design, integrating active and passive components of silicon photonics devices into a single chip, with over 350 patents [7] - Tower Semiconductor specializes in high-value analog semiconductor solutions, offering customizable process platforms across various markets, including consumer, industrial, and automotive sectors [8]

Core Insights - Tower Semiconductor and Innolight are collaborating to enhance optical module production for AI and data centers, utilizing a new Silicon Photonics platform that reduces the number of lasers required per module by half, improving cost and supply chain efficiency [1][2][3] Group 1: Technology and Innovation - The new Silicon Photonics (SiPho) platform from Tower Semiconductor is now in production and aims to meet the growing demands of AI and data centers [1][2] - The technology significantly boosts scalability, performance, and cost-effectiveness for optical modules, targeting current and future bandwidth needs of 100Gbps, 200Gbps, and 400Gbps per lane [2][3] - The SiPho platform offers industry-leading edge coupling efficiency and higher-performance modulators, which enhances system reliability and reduces complexity [3] Group 2: Market Demand and Applications - There is an increasing demand for high-speed optical connectivity in AI-driven data centers, prompting the need for cost-efficient and high-performance solutions [2] - The collaboration aims to address the evolving needs of cloud infrastructure and hyperscale customers in the optical module market [3] Group 3: Company Profiles - Tower Semiconductor is a leading foundry specializing in high-value analog semiconductor solutions, focusing on various markets including consumer, industrial, automotive, and medical [5] - Innolight is recognized as a global leader in high-speed optical solutions, particularly for AI and data center applications, with a presence in multiple countries [8]

Core Insights - Tower Semiconductor is participating in the 2025 Applied Power Electronics Conference (APEC) to showcase its advanced power management technology platform, particularly its 300mm 65nm 3.3V-based BCD solution aimed at Automotive, AI, Mobile PMIC, and Data Center applications [1][2]. Company Overview - Tower Semiconductor is a leading foundry specializing in high-value analog semiconductor solutions, providing technology and process platforms for various markets including consumer, industrial, automotive, mobile, infrastructure, medical, and aerospace and defense [4]. - The company offers a wide range of customizable process platforms such as SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensors, and integrated power management solutions [4]. - Tower Semiconductor operates multiple facilities globally, including one in Israel, two in the U.S., and two in Japan, along with shared and accessed capacities in Italy and New Mexico [4]. Product Innovations - The company’s BCD platforms, including the 0.18μm (200mm) and 65nm (300mm) technologies, are designed for various applications such as driver ICs, battery management, and high-voltage gate drivers, enhancing power efficiency across sectors [2]. - Tower's recent advancements include a 3.3V gate oxide technology that supports both 3.3V and 5V-based solutions, along with a comprehensive suite of design enablement tools [2]. Event Participation - Dr. Mete Erturk, Sr. Director of Power Management Marketing, will present on Tower Semiconductor's BCD Technology Foundry Offerings at APEC 2025 on March 19, 2025 [3].

Financial Performance - Revenues for Q4 2024 were $387 million, a 5% increase quarter-over-quarter and a 10% increase year-over-year[3]. - Gross profit for Q4 2024 was $87 million, compared to $84 million in Q4 2023[4]. - Operating profit for Q4 2024 was $46 million, slightly up from $45 million in Q4 2023[5]. - Net profit for Q4 2024 was $55 million, with earnings per share of $0.49, consistent with Q4 2023[5]. - Full year 2024 revenues reached $1.44 billion, with a net profit of $208 million, down from $518 million in 2023[6]. - Revenues for Q4 2024 reached $387.2 million, a 10% increase from $351.7 million in Q4 2023[22]. - Gross profit for Q4 2024 was $86.9 million, with a gross margin of approximately 22.4%[22]. - Net profit attributable to the company for Q4 2024 was $55.1 million, compared to $53.8 million in Q4 2023, reflecting a 2.4% increase[22]. - Operating profit for the year ended December 31, 2024, was $191.3 million, down from $547.3 million in 2023, primarily due to restructuring costs[23]. - The company reported a basic earnings per share of $1.87 for the year ended December 31, 2024, compared to $4.70 in 2023[23]. - Adjusted net profit attributable to the company for the year ended December 31, 2024, was $240,985, while for the year ended December 31, 2023, it was $247,136[25]. - Basic adjusted earnings per share for the year ended December 31, 2024, was $2.17, compared to $2.24 for the year ended December 31, 2023[25]. Cash Flow and Investments - Cash flow from operating activities for 2024 was $449 million, with net investments in property and equipment totaling $432 million[7]. - Net cash provided by operating activities for the year ended December 31, 2024, was $448,682, down from $676,561 in 2023[29]. - Cash and cash equivalents at the end of the period for December 31, 2024, were $271,894, compared to $260,664 for December 31, 2023[29]. - The merger-contract termination fee received from Intel during the third quarter of 2023 amounted to $313,501, included in net cash provided by operating activities for the year ended December 31, 2023[30]. - Investments in property and equipment for the year ended December 31, 2024, were $(431,653), similar to $(432,184) in 2023[29]. - The net cash used in investing activities for the year ended December 31, 2024, was $(400,239), compared to $(720,847) in 2023[29]. Assets and Liabilities - Total assets increased to $3.08 billion as of December 31, 2024, up from $2.92 billion a year earlier[21]. - Total liabilities decreased to $440.3 million as of December 31, 2024, from $491.5 million a year earlier[21]. - Total debt repaid, net, for the year ended December 31, 2024, was $(32,455), slightly higher than $(32,346) in 2023[29]. Future Outlook - The company expects Q1 2025 revenues to be $358 million, reflecting approximately 10% year-over-year growth[9]. - The company aims for year-over-year revenue growth in 2025, with an acceleration expected in the second half of the year[10]. - The strategic integration of production processes has been initiated by transferring flows to the Fab2 200mm factory[8]. - Tower Semiconductor continues to focus on customer-partnered innovation to meet evolving market needs and expand market share[10]. Risks and Challenges - The company is facing risks related to global economic conditions, including potential impacts from the ongoing war in Israel and supply chain disruptions[18]. - The effect of Japanese Yen exchange rate change over cash balance for the three months ended December 31, 2024, was $(4,972), compared to $5,537 for the previous quarter[28].

Fourth Quarter and Fiscal Year 2024 Financial Results Conference Call Supporting Slides February 10, 2025 Safe Harbor This presentation contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward ...

Financial Data and Key Metrics Changes - The company reported annual revenue of $1.44 billion for 2024, with a net profit of $208 million and a fourth-quarter revenue of $387 million, reflecting an 18% growth from Q1 to Q4 and a 10% year-over-year growth for the fourth quarter [11][34] - The guidance for Q1 2025 is set at a midpoint of $385 million, indicating approximately 10% year-over-year growth [11][34] - Gross profit for Q4 2024 was $87 million, slightly up from $84 million in Q4 2023, while operating profit was $46 million compared to $45 million in the prior year [36] Business Line Data and Key Metrics Changes - RF Infrastructure revenue was approximately $241 million, accounting for 17% of total revenue, with expectations for strong growth in 2025 following a near doubling in 2024 [13] - RF Mobile revenue was about $418 million, representing 29% of total revenue, with anticipated decreases in 2025 due to a forecasted decline in the Android market [13][14] - Power Management and Discrete revenue was around $426 million, making up 36% of total revenue, with expected growth in 2025 for advanced 300-millimeter platforms [14][15] - Sensor Display revenue was about $221 million, or 15% of total revenue, with moderate growth expected in 2025 [15] Market Data and Key Metrics Changes - The RF Infrastructure segment was the fastest-growing in 2024, driven by investments in cloud computing and AI clusters [17] - The company is seeing strong demand for silicon germanium and silicon photonics technologies, particularly in optical transceivers [19][21] - The mobile market is experiencing headwinds, particularly in the Android segment, with expectations of a reduction in RF Mobile business by upper teens percentage [50][102] Company Strategy and Development Direction - The company is focused on capacity investments, including a $350 million investment to enhance 5G capabilities and a commitment to invest up to $300 million in Intel's New Mexico fab facility [42][44] - The strategy includes transitioning to advanced 300-millimeter platforms to capture market share and improve margins [24][96] - The company aims to achieve a revenue target of $2.66 billion annually by fully loading existing facilities and expanding capacity [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving year-over-year growth in 2025, with expectations for strong performance in the second half of the year [32][114] - The company is strategically repurposing capacities to align production with evolving customer needs, which may temporarily lower utilization rates [29] - Management noted that the current low tax rates are due to one-time benefits, with a long-term effective tax rate expected to be around 15% [38] Other Important Information - The company is actively engaged in partnerships for emerging markets, including SATCOM and automotive applications [23] - Utilization rates across various fabs were reported, with Fab 1 at 70%, Fab 2 and Fab 9 at approximately 55%, and Fab 7 at 90% [30] Q&A Session Summary Question: Expectations for the mobile market contraction - Management indicated a reduction in the RF Mobile business, particularly in the Android segment, with a forecasted decline in the upper teens percentage [50][102] Question: Incremental margin and Agrate ramp impact - Management expects no additional headwinds for the rest of the year, with a 50% incremental margin model anticipated to work as planned [53] Question: Revenue guidance for Q1 - The guidance for Q1 indicates a revenue of $358 million, which aligns with seasonal trends but still shows year-over-year growth [57] Question: Growth in RF Infrastructure business - Management noted strong growth expectations for RF Infrastructure, driven by data center-related business and silicon photonics advancements [66][68] Question: Power management business growth - The power management business is expected to grow year-over-year, while the discrete business is anticipated to decline [124]