The logo of Israeli analog integrated circuits developer, Tower Semiconductor is seen at their offices in Migdal HaEmek, northern Israel, February 28, 2022. Picture taken on February 28, 2022. REUTERS
Nov 10 (Reuters) – Israeli contract chipmaker Tower Semiconductor forecast fourth-quarter revenue above estimates on Monday, driven by strong demand for its specialty analog chips used in data centers and artificial intelligence infrastructure.
The company expects quarterly revenue of $440 million, plus or minus 5%, compared with analysts’ average estimate of $434.4 million, according to data compiled by LSEG.
Tower, whose U.S.-listed shares were up 4.4% in premarket trading, has been gaining share in fast-growing segments such as Radio-Frequency (RF) infrastructure as well as other cloud network and data transmission-related platforms.
The company has been expanding its manufacturing capacity across Israel, U.S., Italy and Japan.
Tower manufactures analog and mixed-signal semiconductors for customers across industries including automotive, industrial, consumer electronics and communications.
CEO Russell Ellwanger said the market for its technologies essential for high-speed optical data transmission, combined with rising data center demand, is fueling strong growth.
Tower said it is investing an additional $300 million to expand the capacity and advance next-generation capabilities in its Silicon-Germanium and Silicon Photonics technologies, essential for high-speed optical data transmission.
Tower reported revenue of $395.7 million for the quarter ended September 30, topping expectations of $394 million.
Its quarterly adjusted earnings of 55 cents per share also beat estimates of 54 cents.
Reporting by Arnav Mishra in Bengaluru; Editing by Shreya Biswas
