Leveraging Tower’s Mature Silicon Photonics Foundry Platform to Enable Scalable FMCW LiDAR MIGDAL HAEMEK, Israel, and SAN JOSE, CA. – January 05, 2026 – Tower Semiconductor (NASDAQ/TASE: TSEM), a leading foundry of high-value analog semiconductor solutions, and LightIC Technologies (“LightIC”), a developer of silicon photonics–based FMCW LiDAR solutions, today announced a strategic collaboration leveraging Tower’s mature silicon photonics platform to support LightIC’s Frequency-Modulated Continuous-Wave (F ...

GLOBALFOUNDRIES (NasdaqGS:GFS) Update / Briefing December 03, 2025 10:00 AM ET Company ParticipantsSameer Wasson - CEOMike Hogan - Chief Business OfficerEric Chow - Head of Investor RelationsCJ Muse - Senior Managing DirectorEd Kaste - Senior Vice President of Ultra-low Power Product LineMark Lipacis - Senior Managing DirectorConference Call ParticipantsMark Lipacis - AnalystTristan Gerra - AnalystTristan Gerra - Managing Director, Senior AnalystOperatorThank you for standing by, and welcome to the GlobalFo ...

Summary of GlobalFoundries Conference Call Company Overview - **Company**: GlobalFoundries (NasdaqGS: GFS) - **Date**: December 02, 2025 - **Speakers**: Tim Arcuri (Analyst, UBS), Tim Breen (CEO), Sam Franklin (CFO) Key Industry Insights Demand Environment - The demand environment has improved compared to previous quarters, with a notable recovery from the macroeconomic weakness experienced in early 2023 [6][7][8] - Data centers are experiencing strong demand, with expectations of continued growth as the build-out phase is just beginning [8] - The automotive sector has shown significant growth, with GlobalFoundries' automotive business approaching $1.5 billion, reflecting double-digit growth despite a flat market [9] Geopolitical Environment - Geopolitical uncertainties have led to a shift in sourcing strategies, with companies increasingly seeking non-China and non-Taiwan supply chains [12][13] - U.S. sourcing has become a critical factor in new platform decisions, providing a long-term tailwind for GlobalFoundries [13][16] Market Dynamics - The company has seen a strong share story in various markets, particularly in automotive and data centers, despite some markets being weaker overall [8][9] - The automotive sector is expected to continue growing due to increased content requirements in vehicles, even if unit sales remain flat [26] Financial Performance Revenue and Margins - Non-wafer revenue has shown strong momentum, expected to reach approximately 13% of total revenue in the fourth quarter [41][44] - The company aims for a gross margin of 30% by the end of the year, with current guidance suggesting a range of 28.5% to 29.5% [54][59] - The strategic focus on diversifying revenue streams and improving product mix is expected to enhance profitability [58][60] Future Outlook - The company anticipates significant growth in the Silicon Photonics segment, projected to reach $1 billion by 2030 [34] - The acquisition of MIPS is expected to enhance the company's capabilities in RISC-V processor IP, with potential non-wafer revenue upwards of $100 million next year [47][50] Strategic Initiatives Product Development - GlobalFoundries is focusing on enhancing its technology suite for automotive applications, including high-performance microcontrollers and secure imaging [25] - The company is investing in design capabilities to accelerate customer projects and improve time-to-market [40] Capital Allocation - Free cash flow is projected to exceed $1 billion in 2025, leading to discussions about potential capital returns to shareholders through buybacks or dividends [61] Conclusion - GlobalFoundries is well-positioned to capitalize on improving market conditions, geopolitical shifts, and growing demand in key sectors such as automotive and data centers. The focus on diversifying revenue streams and enhancing product offerings is expected to drive future growth and profitability.

Core Insights - GlobalFoundries (GF) has acquired Advanced Micro Foundry (AMF), enhancing its position in silicon photonics and expanding its technology portfolio and production capacity in Singapore [1][2][4] - The acquisition positions GF as the largest silicon photonics pure-play foundry by revenue, leveraging AMF's manufacturing assets and intellectual property [2][5] - GF aims to establish a silicon photonics research and development center in Singapore, collaborating with A*STAR to innovate in ultra-fast data transfer technologies [4][6] Company Strategy - The acquisition is a strategic move to address the growing demands in long-haul optical communications, computing, LiDAR, and sensing, with plans to scale production from 200mm to 300mm [2][3] - GF's expansion in Singapore complements its existing U.S. manufacturing capabilities, enhancing supply chain resilience and providing secure solutions from multiple geographies [3][4] - The focus on silicon photonics technology is critical for AI infrastructure, enabling faster data transfer and supporting advanced telecom networks [4][5] Market Position - AMF's expertise and technology will allow GF to deliver a differentiated roadmap for pluggable transceivers and co-packaged optics, targeting adjacent markets such as automotive and quantum computing [4][5] - The collaboration with AMF is expected to enhance GF's ability to meet the needs of AI datacenters and next-generation applications [2][4] - The acquisition reflects a broader trend in the industry towards silicon photonics as a solution to the limitations of traditional copper connections [3][4]

Financial Data and Key Metrics Changes - The company reported third-quarter revenue of $1.688 billion, flat compared to the prior quarter and a 3% decrease year-over-year [30] - Gross profit for the third quarter was $439 million, translating to a gross margin of approximately 26%, which expanded sequentially and year-over-year by about 80 and 130 basis points respectively [33][34] - Operating profit was $260 million with an operating margin of 15.4%, at the high end of the guidance range and 180 basis points above the prior year period [34] - Net income for the third quarter was $232 million, an increase of approximately 1% from the prior year period, resulting in diluted earnings of $0.41 per share [35] Business Line Data and Key Metrics Changes - Automotive revenue decreased approximately 17% sequentially but increased 20% year-over-year, driven by share and content expansion [31][32] - Smart mobile devices revenue increased approximately 10% sequentially but decreased approximately 13% year-over-year, primarily due to one-time pricing adjustments [30][31] - Home and industrial IoT revenue decreased approximately 14% sequentially and 16% year-over-year, driven by a reduction in wafer revenue associated with aerospace and defense applications [31] - Communications infrastructure and data center revenue increased approximately 2% sequentially and 32% year-over-year, with expectations for low 20s percentage growth in 2025 [32] Market Data and Key Metrics Changes - The automotive segment represented approximately 18% of total revenue in the third quarter [23] - The communications infrastructure and data center segment accounted for approximately 10% of total revenue [27] - The company secured nearly 150 new design wins across end markets, representing more than 50% growth from the same quarter a year ago [19] Company Strategy and Development Direction - The company is focusing on scaling AI in data centers and expanding its optical networking capabilities, with an estimated serviceable addressable market for optical networking expected to grow at a CAGR of approximately 40% through 2030 [8][9] - The company plans to invest $16 billion to expand U.S. manufacturing and advanced packaging capabilities, supported by leading customers [14] - The strategy includes diversifying the business and accelerating growth in high-margin product platforms, with automotive expected to approach $1.5 billion in annual revenue by 2025 [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture long-term trends driving the industry, particularly in AI and semiconductor supply chain resilience [17][18] - The ongoing geopolitical conflicts and supply chain challenges are prompting customers to seek non-China, non-Taiwan supply chains, which the company is well-positioned to support [13][15] - Management anticipates strong growth in the Silicon Photonics business, projecting it to become a billion-dollar-plus run-rate business by the end of the decade [9] Other Important Information - The company plans to qualify licensed GaN technology at its Vermont fab, with full production expected to begin in the second half of 2026 [20] - The company announced plans to invest an additional EUR 1.1 billion in its Dresden fab, aiming to increase production capacity significantly [16] Q&A Session Summary Question: Long-term differentiation of Silicon Photonics business - Management highlighted that the company has been early in developing Silicon Photonics, focusing on best-in-class device performance and building an ecosystem for customer support [42][43] Question: Capital and CapEx needs for Silicon Photonics growth - Management indicated that while specific CapEx guidance for 2026 is not available, an increase in CapEx is expected to support the ramp in demand for Silicon Photonics [45][46] Question: Revenue guidance for smart mobile devices - Management noted that smart mobile devices are expected to see a low double-digit percentage decline year-over-year due to previous pricing adjustments, but they anticipate future growth in differentiated areas [50][54] Question: Onshoring and customer demand - Management reported strong engagement from customers regarding U.S. onshoring, with a significant pipeline of opportunities expected to ramp in 2027 and beyond [60][61] Question: GaN strategy and competition - Management expressed excitement about GaN technology, emphasizing its critical role in data centers and infrastructure, and noted a focus on high-quality, reliable devices [66][68]

Financial Data and Key Metrics Changes - GlobalFoundries reported third-quarter revenue of $1.688 billion, flat compared to the prior quarter and a 3% decrease year-over-year [30] - Gross profit for the third quarter was $439 million, resulting in a gross margin of approximately 26%, which expanded sequentially and year-over-year by about 80 and 130 basis points respectively [33] - Operating profit was $260 million, with an operating margin of 15.4%, at the high end of the guidance range and 180 basis points above the prior year period [34] - Net income for the third quarter was $232 million, an increase of approximately 1% from the prior year period, translating to diluted earnings of $0.41 per share [35] Business Line Data and Key Metrics Changes - Automotive revenue decreased approximately 17% sequentially but increased 20% year-over-year, driven by share and content expansion [31] - Smart mobile devices revenue increased approximately 10% sequentially but decreased approximately 13% year-over-year, primarily due to one-time pricing adjustments [30][31] - Home and industrial IoT revenue decreased approximately 14% sequentially and 16% year-over-year, mainly due to a reduction in wafer revenue associated with aerospace and defense applications [31] - Communications infrastructure and data center revenue increased approximately 2% sequentially and 32% year-over-year, with expectations for low 20s percentage growth in 2025 [32] Market Data and Key Metrics Changes - Automotive represented approximately 18% of the quarter's total revenue, with strong momentum and new design wins from 12 unique customers [24] - Smart mobile devices accounted for approximately 45% of the quarter's total revenue, with significant design wins for the newly launched CIPIC platform [25] - Home and industrial IoT represented approximately 15% of the quarter's total revenue, with partnerships aimed at producing next-generation smart sensors [27] - Communications infrastructure and data center represented approximately 10% of the quarter's total revenue, with new optical networking design wins [28] Company Strategy and Development Direction - GlobalFoundries is focusing on scaling AI in data centers and expanding its optical networking capabilities, estimating a 40% CAGR for the serviceable addressable market through 2030 [8][9] - The company is committed to reshoring semiconductor supply chains to the US, with a $16 billion investment to expand US manufacturing capabilities [14][15] - The strategy includes diversifying the business towards high-margin product platforms, with automotive expected to approach $1.5 billion in annual revenue by 2025 [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture long-term trends driving the industry, emphasizing the importance of differentiated technologies and a resilient global footprint [17] - The ongoing geopolitical conflicts and supply chain challenges are prompting customers to seek non-China, non-Taiwan supply chains, which GlobalFoundries is well-positioned to support [13][14] - The company anticipates strong growth in silicon photonics and physical AI applications, projecting the semiconductor SAM for physical AI to exceed $18 billion by 2030 [12] Other Important Information - Cash flow from operations for the third quarter was $595 million, with CapEx at $189 million, representing roughly 11% of revenue [35] - The company maintains a strong balance sheet with approximately $4.2 billion in cash and cash equivalents and total debt of $1.2 billion [36] - Guidance for the fourth quarter includes expected revenue of $1.8 billion, with gross margin projected at approximately 28.5% [36] Q&A Session Summary Question: Long-term differentiation of silicon photonics business - Management highlighted that GlobalFoundries has been early in developing silicon photonics, focusing on best-in-class device performance and building an ecosystem for customer support [44] Question: Capital and CapEx needs for silicon photonics growth - Management indicated that while specific CapEx guidance for 2026 is not available, an increase in CapEx is expected to support the ramp in demand for silicon photonics [46][48] Question: Revenue guidance for smart mobile devices - Management noted that smart mobile devices are expected to see a low double-digit percentage decline year-over-year, influenced by previous pricing adjustments [53] Question: Onshoring demand and pipeline - Management reported a strong pipeline for US onshoring, with significant customer announcements indicating a potential $15 billion to $20 billion spend in the addressable market [61] Question: GaN strategy and competition - Management expressed excitement about GaN technology, emphasizing its critical role in data centers and infrastructure, and differentiating their strategy from competitors like TSMC [67][70]

Summary of Conference Call Transcript Company Overview - The company discussed is STMicroelectronics, focusing on its performance in Q3 and outlook for Q4 and beyond. Key Points Industry and Segment Performance - **Personal Electronics**: Revenue grew 40% sequentially in Q3, driven by seasonality and increased content with main customers [2][3] - **Automotive Segment**: Experienced a year-over-year decrease primarily due to one specific customer, an electric car maker, but is expected to start growing year-over-year soon [2][3] - **Overall Growth**: All segments except automotive showed sequential growth, with a positive outlook for Q4 [2] Q4 Guidance and Future Projections - **Q4 Revenue Guidance**: Expected sales of $3.228 billion, slightly above the typical seasonal decline of around 10% [4] - **Q1 2026 Outlook**: Anticipated revenue decline of 10%-11% compared to Q4, but a year-over-year growth of 20% when compared to Q1 2025 [5][6] Product Development and Growth Drivers - **New Product Introduction**: Plans to launch 45 new products in microcontrollers, targeting higher computing power and memory storage, which will drive growth [8][10] - **Analog Products**: Growth expected from new products in personal electronics, automotive, and industrial sectors [11] - **AI Server Market**: The company is focusing on silicon photonics and general-purpose microcontrollers, with a projected revenue contribution of $300 million in three years and $500 million by the end of the decade [13][14] Silicon Carbide and Market Dynamics - **Silicon Carbide Revenue**: Projected revenues of $1.1 billion in 2024, with expectations to return to peak levels by 2027 [18][21] - **Regional Demand**: Growth in Europe and China expected, with 60% of growth driven by European programs and 40% by Chinese markets [20] Profitability and Cost Management - **Operating Margin**: Currently weak at -15%, with a restructuring plan aimed at reducing operating expenses by $120 million annually starting in 2025 [22][23] - **Unused Capacity Charges**: Expected to decrease significantly in 2026, with ongoing costs related to legacy capacity [29][30] Competitive Landscape - **Market Share Goals**: Aiming for a 10% market share in the addressable market for power analog and microcontroller products [24][25] - **Silicon Photonics Competition**: Competing against Tower Semiconductor and GlobalFoundries, with expectations to exceed a 10% market share [26] Strategic Focus - **Diversification Strategy**: Shifted focus from automotive to a broader range of products, including power and analog technologies [27][28] - **Long-term Plans**: Emphasis on preparing for future market opportunities, particularly in GaN technology and 800-volt architecture [27][28] Additional Insights - The company is strategically positioning itself to capitalize on emerging technologies and market demands, particularly in AI and power management sectors, while managing current challenges in automotive and silicon carbide markets.

Summary of GlobalFoundries Conference Call Company Overview - **Company**: GlobalFoundries - **Industry**: Semiconductor Manufacturing Key Themes and Insights 1. **Geopolitical Impact**: GlobalFoundries is well-positioned to navigate geopolitical issues, particularly tariffs, with a limited impact of approximately $20 million in the second half of the year, representing less than 1% of cost of goods sold [3][4][5] 2. **Strategic Pillars**: The company's strategy is built on three pillars: differentiated technology solutions in essential semiconductor nodes (12nm and 14nm and above), deep partnerships with customers, and a unique geographic footprint across North America, Europe, and Asia [4][5] 3. **Domestic Sourcing Demand**: There is increasing customer interest in sourcing semiconductors outside of China and Taiwan due to geopolitical changes, leading to robust demand for GlobalFoundries' services [5][9] 4. **Long-term Customer Relationships**: The company is experiencing longer engagement durations with major customers, indicating a shift towards more stable and long-term partnerships [10] 5. **CHIPS Act Funding**: GlobalFoundries is progressing with CHIPS Act funding, with a refreshed announcement of $16 billion over the next decade to enhance technology diversity and expand manufacturing capacity [11][12] 6. **Investment Tax Credit**: The increase in investment tax credit from 25% to 35% is expected to have a substantial impact on capital expenditures and operational spending [13][14] Supply and Demand Dynamics 1. **Supply Chain Recovery**: The company is witnessing a normalization in inventory levels post-COVID, with factories operating at low 80% utilization rates, indicating room for growth [19][20] 2. **Pricing Stability**: Pricing has remained stable, with 90% of design wins being sole-sourced, contributing to a stable pricing environment [21][22][23] 3. **Capacity Expansion Plans**: GlobalFoundries plans to invest in additional capacity as utilization approaches mid-90s, with a focus on existing fabs before constructing new clean room spaces [24][26] Technology and Market Segments 1. **Market Growth Potential**: The served available market (SAM) for GlobalFoundries is projected to grow from $80 billion to $120 billion, with the company holding a high single-digit market share [28] 2. **Silicon Photonics and AI**: The silicon photonics segment is expected to reach $200 million in revenue, with strong growth rates tied to AI applications [30][31] 3. **Automotive Sector Growth**: The automotive segment has grown from $100 million to over $1 billion, with expectations of mid-teens growth driven by increased silicon content in vehicles [46][47] 4. **IoT and Home Market**: The IoT segment is nearing the end of inventory digestion, with significant design win traction expected to drive future growth [52][54] 5. **Communication Infrastructure**: The communications and data center segment is experiencing rapid growth, with a shift towards optical communication solutions [56][58] Financial Outlook 1. **Gross Margin Improvement**: The company aims to improve gross margins from mid-20s to 30% and ultimately to 40% through increased utilization and a richer product mix [62][63] 2. **Capital Expenditures**: Current CapEx guidance is around $700 million, with expectations to increase as demand grows, potentially reaching $1 billion or more [65][69] 3. **Free Cash Flow**: The company anticipates generating approximately $1 billion in adjusted free cash flow this year, providing a solid base for future growth [70] Competitive Landscape 1. **Primary Competitors**: GlobalFoundries competes with TSMC, UMC, and Samsung, but differentiates itself through unique technology offerings and strong customer partnerships [40][41] 2. **Collaboration with Competitors**: The company sees opportunities for both competition and cooperation with fabless semiconductor companies, depending on the technology involved [41] Conclusion - GlobalFoundries is optimistic about its long-term growth prospects, driven by strategic partnerships, a robust technology portfolio, and favorable market dynamics. The company is focused on navigating geopolitical challenges while capitalizing on emerging opportunities in various end markets.

Core Insights - Tower Semiconductor is hosting its 2025 Technical Global Symposium (TGS) in Shanghai on September 16, 2025, and in Santa Clara on November 18, 2025, showcasing its latest technologies and expertise [1][2] - The events will focus on key market megatrends such as AI and high-speed connectivity, emphasizing Tower's capabilities in delivering high-performance connectivity and advanced imaging solutions [2][7] Event Highlights - Keynote by CEO Russell Ellwanger discussing the company's vision and commitment to growth through customer partnerships [7] - Technical sessions led by experts covering Silicon Photonics, SiGe, RF SOI, power management, image sensors, and advanced display technologies [7] - Networking opportunities with Tower's senior executives and industry peers to foster collaborations in semiconductor innovation [7] Company Overview - Tower Semiconductor is a leading foundry for high-value analog semiconductor solutions, serving markets like consumer, industrial, automotive, mobile, infrastructure, medical, and aerospace [5] - The company offers a range of customizable process platforms including SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, and MEMS, along with design enablement services [5] - Tower operates multiple facilities globally, including in Israel, the U.S., and Japan, to provide multi-fab sourcing and extended capacity for its customers [5]

Financial Data and Key Metrics Changes - The company reported revenues of $372 million for Q2 2025, representing a year-over-year increase of $21 million or 6% compared to Q2 2024, and a quarter-over-quarter increase of $14 million or 4% compared to Q1 2025 [15][18] - Net profit for Q2 2025 was $47 million, also $7 million higher quarter-over-quarter, resulting in earnings per share of $0.42 basic and $0.41 diluted [15][18] - Gross profit and operating profit for Q2 2025 were $80 million and $40 million respectively, each higher than the prior quarter by $7 million [15] Business Line Data and Key Metrics Changes - The RF Infrastructure business grew significantly, contributing over $90 million in revenues, which accounted for 25% of corporate revenues, up from 14% in the same period of 2024 [6][15] - The company has seen a fivefold increase in silicon photonics products moving from preproduction to production phase compared to the same period in 2024 [7] - RF SOI revenue increased over 20% from Q1 to Q2 2025 and is expected to grow close to 30% from Q2 to Q3 2025 [9] Market Data and Key Metrics Changes - The company is experiencing strong demand in the optical transceiver market, particularly for silicon germanium and silicon photonics technologies [5][6] - Utilization rates in various fabs were reported, with Fab two and Fab nine operating at about 60% utilization, while Fab three was fully utilized at 85% [12][13] Company Strategy and Development Direction - The company is repurposing multiple factories to increase capacity for RF infrastructure, specifically silicon germanium and silicon photonics [4][5] - Continued investment in capacity and R&D is planned throughout 2025, with further growth expected in 2026 [5][19] - The company aims to achieve $2.7 billion in annual revenue at full loading of existing fabs, targeting $560 million in operating profits and $500 million in net profit [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining the number one market share position in the optical transceiver market, with strong customer qualifications and demand [5][6] - The company anticipates strong sequential growth throughout the second half of 2025, with Q3 revenues expected to be around $395 million [4][5] - Management noted that the increase in silicon germanium and silicon photonics capacity will align with customer demand forecasts [85] Other Important Information - The company has a strong balance sheet with total assets of $3.2 billion and shareholders' equity reaching a record of $2.8 billion [18] - The company is engaged in various strategic partnerships and investments, including a $500 million allocation for fab equipment in Italy [19] Q&A Session Summary Question: What segments are expected to contribute to sequential growth in the second half of the year? - Management indicated that RF Infrastructure, particularly silicon germanium and silicon photonics, will be the primary contributors, with power management and RF SOI also expected to show strong growth [24][25] Question: Is the company fully booked through the end of the year? - Management confirmed that while there is room for immediate upsides, the focus remains on utilizing additional capacity for silicon germanium and silicon photonics [27][28] Question: Can you elaborate on the silicon photonics technology supporting receive functions? - Management explained that the new technology for the receive function could add approximately 20% to the served market and expects significant growth in silicon photonics shipments in Q4 2025 [38][39] Question: How is the improvement in RF mobile space characterized? - Management noted that the growth is attributed to inventory replenishment and share gains, with existing customers increasing their forecasts [42][62] Question: What is the outlook for operating expenses in 2025? - Management indicated that operating expenses are expected to trend flat to up on a year-over-year basis, maintaining a current run rate of about $40 million per quarter [78] Question: How is cash flow expected to trend with ongoing CapEx? - Management stated that cash from operations is expected to continue its positive trend, while CapEx levels are anticipated to remain stable [74][80]