Foundry Tower held back by slow recovery
Mixed-signal and RF foundry Tower semiconductor said that its revenue declined in 1Q24 both sequentially and year-on-year due to market weakness but with the expectation of an improving year ahead.
Tower announced 1Q24 revenue of US$327 million which was slightly above previously given guidance. However, this was down 7.1 percent compared with the prior quarter and down 8.1 percent from the same quarter a year before.
The company made a net profit of US$45 million.
Russell Ellwanger, CEO of Tower Semiconductor, commented: “As we move through the year, we remain focused on and confident about continuous growth, driven by the performance of several of our differentiated technologies, critical to present market needs with market leader customers who are true partners. This growth is against the landscape of a not yet robust market. Recent customer forecasts give reason to believe market recovery is forthcoming.”
The outlook for 2Q24 is that Tower will achieve revenue of US$350 million plus or minus 5 percent. At the mid-point this would be just behind the company’s revenue of US$357 million in 2Q23.
Related links and articles:
News articles:
Analyst drops chip market forecast after 1Q24 “train wreck”
Future Horizons sounds warnings over chip market rebound
TSMC trims semiconductor, foundry forecast for 2024
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