STMicroelectronics (NYSE:STM) FY Conference December 11, 2025 01:25 PM ET Company ParticipantsSimon Coles - Head of European Technology Hardware and Semiconductor ResearchLorenzo Grandi - CFOSimon ColesI think we're ready to start. Hi everyone. I'm Simon Coles, Head of European Technology Hardware and Semiconductor Research here at Barclays. Delighted to have Lorenzo, CFO of STMicro, with me here today. Thanks so much for joining us.Lorenzo GrandiThank you, Adrian.Simon ColesMaybe we'll start off with sort ...

MIGDAL HAEMEK, Israel, December 09, 2025 – Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry of high value analog semiconductor solutions, today announced that its company representatives will participate in the Nomura’s CES Technology Conference on Monday, January 5th and Tuesday, January 6th. The Conference will take place at the Bellagio Hotel in Las Vegas. There will be an opportunity for investors to meet one-on-one with company representatives. Interested investors should contact the confer ...

MIGDAL HAEMEK, Israel, December 09, 2025 – Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry of high value analog semiconductor solutions, today announced that its company representatives will participate in the Nomura’s CES Technology Conference on Monday, January 5th and Tuesday, January 6th. The Conference will take place at the Bellagio Hotel in Las Vegas. There will be an opportunity for investors to meet one-on-one with company representatives. Interested investors should contact the confer ...

MIGDAL HAEMEK, Israel, December 03, 2025 – Tower Semiconductor (NASDAQ/TASE: TSEM), the leading foundry of high-value analog semiconductor solutions, today announced that its company representatives will participate in the Barclays 23rd Annual Global Technology Conference on Wednesday, December 10th. The Barclays conference will take place at the Palace Hotel in San Francisco. There will be an opportunity for investors to meet one-on-one with company representatives. Interested investors should contact the ...

Tower Semiconductor is a global specialty foundry that provides technology and manufacturing platforms for a diverse range of customers.What HappenedAccording to a filing with the U.S. Securities and Exchange Commission dated Nov. 14, G2 Investment Partners Management LLC added 174,929 shares of Tower Semiconductor Ltd. (TSEM +4.13%) during the third quarter. The position’s value grew by approximately $16 million, bringing the stake to 289,929 shares, or $20.96 million, as of Sept. 30, 2025.What Else to Kno ...

Core Insights - Tower Semiconductor has seen significant increases in institutional investments, with several large investors raising their stakes in the company during the first quarter of the year [1][7] - Analysts have raised their price targets for Tower Semiconductor, indicating a positive outlook for the stock, with a consensus target price of $119.25 [2] - The company's recent quarterly earnings report met analysts' expectations, showing a revenue increase of 6.9% year-over-year [4] Institutional Investment - Menora Mivtachim Holdings LTD. increased its holdings by 39.7%, now owning 1,879,207 shares valued at $67.01 million after acquiring 533,700 shares [1] - Voya Investment Management LLC grew its stake by 45.1%, owning 918,068 shares worth $32.74 million after purchasing 285,471 shares [1] - Invesco Ltd. raised its holdings by 14.2%, now owning 2,010,856 shares valued at $71.71 million after acquiring 249,621 shares [1] - Wellington Management Group LLP lifted its position by 12.2%, owning 2,240,229 shares worth $79.89 million after purchasing 243,267 shares [1] - Granahan Investment Management LLC bought a new stake valued at approximately $6.19 million [1] - Institutional investors collectively own 70.51% of Tower Semiconductor's stock [1] Analyst Ratings - Wedbush raised its price objective from $85.00 to $125.00, rating the stock as "outperform" [2] - Benchmark increased its price target from $73.00 to $120.00, giving a "buy" rating [2] - Barclays raised its target from $74.00 to $97.00, assigning an "equal weight" rating [2] - Susquehanna increased its target from $100.00 to $135.00, rating the company as "positive" [2] - The average rating for Tower Semiconductor is "Moderate Buy" with a consensus target price of $119.25 [2] Financial Performance - Tower Semiconductor reported earnings per share (EPS) of $0.55 for the last quarter, matching analysts' expectations [4] - The company had revenue of $395.67 million, slightly above the consensus estimate of $394.98 million [4] - Revenue increased by 6.9% compared to the same quarter last year [4] - The company had a return on equity of 7.37% and a net margin of 13.20% [4] Company Profile - Tower Semiconductor Ltd. is an independent semiconductor foundry specializing in analog intensive mixed-signal semiconductor devices [5] - The company offers various customizable process technologies, including SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS [5] Stock Performance - Tower Semiconductor's shares opened at $108.16, with a one-year low of $28.64 and a high of $109.06 [3] - The company has a market capitalization of $11.99 billion and a PE ratio of 62.16 [3] - The debt-to-equity ratio is 0.05, with a quick ratio of 5.50 and a current ratio of 6.57 [3]

Core Viewpoint - The acquisition of 94.366% stake in Zhongxin Ningbo by Guokaiwei has been terminated due to the inability to reach an agreement within the expected timeframe, but this will not significantly impact the financial status of either party [1][2]. Group 1: Company Overview - Guokaiwei is a leading integrated circuit design company in China, focusing on ultra-high-definition smart displays and smart vision, and has become a key supplier of related chip solutions [2]. - Zhongxin Ningbo possesses unique advantages in special process fields, with 6-inch and 8-inch wafer manufacturing lines, currently in the capacity ramp-up phase [2]. Group 2: Impact of Termination - The termination of the acquisition will not disrupt Guokaiwei's established operational pace, as the company continues to focus on its "ALL IN AI" strategy and the development of AI SoC products [3]. - Guokaiwei has stated that the termination does not mean a complete abandonment of restructuring, and the company will continue to seek external acquisition opportunities that align with policy encouragement and strategic synergy [3]. Group 3: Market Context - Despite the overall increase in M&A activity in the A-share market this year, there have been over 50 cases of companies terminating major asset restructuring plans, indicating a trend of cautious adjustments in the market [3].

Core Insights - Tower Semiconductor is guiding for a record revenue of $440 million in the fourth quarter of 2025, indicating strong growth across its core technologies [4][5] - The company reported third-quarter 2025 revenue of $396 million, reflecting a 6% increase quarter-over-quarter, with net profit rising to $54 million [2][5] - An additional investment of $300 million is being allocated for SiPho and SiGe capacity growth and next-generation capabilities [6][5] Financial Performance - Third-quarter 2025 gross profit was $93 million, up from $80 million in the second quarter of 2025 [2] - The net profit for the third quarter of 2025 was $54 million, translating to $0.48 basic and $0.47 diluted earnings per share, compared to $47 million and $0.42 basic earnings per share in the previous quarter [2][5] - Cash flow from operating activities for the third quarter was $139 million, an increase from $123 million in the second quarter [3] Business Outlook - The company expects a revenue increase of 14% year-over-year and 11% quarter-over-quarter for the fourth quarter of 2025 [4] - CEO Russell Ellwanger emphasized the strong position of the company in core technologies such as Power Management and Image Sensors, which are showing year-over-year revenue growth [5] - The company is investing in expanding its Newport Beach Fab 3 and repurposing three additional fabs to enhance SiPho and SiGe capabilities [5][6] Investment and Growth Strategy - The $300 million investment will support the growth of SiPho and SiGe businesses, including Fab3 capacity expansion [6] - The Newport Beach site lease has been extended for an additional 3.5 years, averaging $24 million per year over the next five years [6] - Tower Semiconductor's strategic focus on optical transceivers and data center demand positions it for significant future growth [5]

Summary of Conference Call Records Industry Overview - The conference call discusses the optical communication industry, specifically focusing on Optical Circuit Switch (OCS) technology and its market potential. The industry is expected to maintain high growth, particularly for leading optical module manufacturers in 2027-2028, making them a recommended investment direction [1][2]. Key Points and Arguments - **Investment Opportunities**: - Leading optical module manufacturers are highlighted for their high earnings certainty and reasonable valuations, with no signs of bubble formation for 2026 [2]. - Secondary overseas computing chain optical module manufacturers are also noted for having upward performance revision potential for 2026, presenting investment opportunities [3]. - **Emerging Technologies**: - New technologies are creating investment opportunities in three networking directions: Skill out (CPO/CPC), Skill up (OCS/OIO), and Skill across (hollow fiber). OCS is particularly noted for its low latency, low power consumption, and cross-generational hardware reuse advantages [1][5]. - **OCS Technology**: - OCS technology allows for direct switching of optical signals, achieving low latency (tens of nanoseconds) and low power consumption, while being transparent to data formats. However, it has longer switching delays (tens of milliseconds) and higher insertion losses [6][12]. - Major OCS technology solutions include MEMS (Google, Lumentum, Huawei) and liquid crystal (Coherent). MEMS is economically favorable but has longer switching times, while liquid crystal offers high reliability and scalability but requires optimization for switching times [7][8]. - **Market Growth Predictions**: - The OCS market is projected to exceed $1.6 billion by 2029, with potential market space estimated at $2 billion by Coherent [4][12]. Additional Important Content - **Challenges with Traditional Circuits**: - Traditional circuits face issues like packet loss during data transmission. OCS networking aims to reduce data loss and enhance performance in large-scale training clusters by providing more reliable data transmission paths [13]. - **Impact of Supernode Networking**: - The increasing demand for supernode networking highlights OCS's advantages in high predictability and high certainty traffic transmission scenarios, particularly in interconnections between racks or pods [14]. - **OCS Industry Chain**: - The OCS industry chain includes core components such as MEMS chips, optical circulators, lenses, and wavelength division multiplexers. It also involves the entire OCS system manufacturing process [15]. - **Domestic Participation**: - Domestic companies are primarily involved in various optical components or crystal materials and system manufacturing, playing a significant role in advancing OCS technology [16].

Group 1 - The core viewpoint of the article highlights the growth and development of the sensor industry in Hubei Province, which has reached a scale of 26 billion yuan, with Wuhan contributing over 20 billion yuan [1] - Hubei has established a relatively complete industrial chain that includes design, manufacturing, packaging, testing, system integration, and application services [1] - The next steps for Hubei involve focusing on the development of smart sensors and implementing a MEMS industry innovation development plan, aiming to become a national leader in MEMS technology innovation and a hub for smart sensor industries [1] Group 2 - Hubei's strategic actions will include five major initiatives: leading innovation in science and technology, upgrading the industrial chain, enhancing capabilities, empowering application scenarios, and fostering ecological collaboration [1] - The goal is to fully establish Hubei as a prominent source of MEMS technology innovation and a distinctive highland for the smart sensor industry [1]