Tower Semiconductor Ltd Stock Price, News & Analysis

Tower Semiconductor (NASDAQ: TSEM) reported strong financial results for Q1 2022, with revenue of $421 million, up 21% year-over-year. Organic revenue rose by 29%, excluding certain revenues. Gross profit increased to $105 million, reflecting a 50% rise. Operating profit surged 94% to $63 million, while net profit reached $54 million, or $0.50 per share, marking a 91% increase. Cash flow from operations was $137 million. In May 2022, the company received an upgraded corporate credit rating from S&P Ma’alot, enhancing its financial positioning.

Tower Semiconductor has announced the launch of its second-generation 65nm BCD technology, capable of operating at 24V with a 20% reduction in Rdson. Additionally, the company introduces deep trench isolation (DTI) on its 180nm BCD platform, achieving up to 40% die size reduction for voltages up to 125V. These advancements cater to the rising demand for high-power integrated circuits (ICs). The power IC market is projected to exceed $25.5 billion by 2026, highlighting the significance of these innovations. Tower will showcase these technologies at the 2022 PCIM conference in Germany.

Tower Semiconductor (NASDAQ: TSEM) is set to release its Q1 2022 earnings on May 16, 2022. Due to its ongoing transaction with Intel, the company will not provide guidance for the second quarter and will forgo hosting an earnings conference call. Tower Semiconductor specializes in high-value analog semiconductor solutions and operates multiple manufacturing sites, aiming to positively impact various markets, including automotive, medical, and industrial sectors.

Tower Semiconductor Ltd. (Nasdaq: TSEM) announced on April 25, 2022, that its shareholders approved the Merger Agreement with Intel Corporation. This acquisition will see Tower become a wholly owned subsidiary of Intel, with shareholders receiving $53.00 in cash per share. The transaction is subject to regulatory approvals and closing conditions. The EGM's approval is a significant step towards the merger, which aims to enhance Tower's position in the semiconductor industry.

Tower Semiconductor (NASDAQ: TSEM) reported significant financial growth for the fourth quarter and full year of 2021. Q4 revenue reached $412 million, a 19% increase year-over-year, while full-year revenue was $1.508 billion, also reflecting 19% growth compared to 2020. The company achieved a net profit of $52 million in Q4, translating to $0.48 EPS, up 67% year-over-year. Additionally, cash flow from operations totaled $134 million in Q4 with a full-year total of $421 million. Guidance for Q1 2022 was not provided.

Intel Corporation is set to acquire Tower Semiconductor for $53 per share, totaling approximately $5.4 billion. This acquisition aligns with Intel's IDM 2.0 strategy, enhancing its foundry services amid rising semiconductor demand. The purchase aims to combine Intel's advanced manufacturing capabilities with Tower's specialized technology, creating a comprehensive foundry offering. Post-acquisition, the deal is expected to be immediately accretive to Intel's non-GAAP EPS and is anticipated to close in about 12 months, pending regulatory approvals.

Tower Semiconductor (NASDAQ: TSEM) will release its fourth quarter and fiscal year 2021 earnings on February 17, 2022. A conference call to discuss the financial results and first-quarter 2022 revenue guidance will take place at 10:00 a.m. ET on the same day. The call will be accessible via webcast and through phone, with a replay available for 90 days. Tower Semiconductor specializes in analog semiconductor solutions and operates several manufacturing facilities in Israel, the U.S., Japan, and Italy, focusing on serving diverse markets including automotive and medical.

Tower Semiconductor (NASDAQ: TSEM) and Juniper Networks (NYSE: JNPR) have launched the world’s first silicon photonics foundry-ready process, integrating III-V lasers, amplifiers, modulators, and detectors. This innovation enhances optical connectivity for datacenters and telecom networks and supports AI and LiDAR applications. The silicon photonics transceiver market is projected to grow at a CAGR of 40%, exceeding $5B by 2025. Process design kits will be available by year-end, with 400Gb/s and 800Gb/s photonic integrated circuits expected in Q2 2022.