The spend on machinery and other fixed assets will be spent mostly in Fab2 in Israel, Fab9 in Texas (US), Fab5 in Tonami (Japan) and Fab7 in Uozu (Japan). Tower said the increased manufacturing capacity will start to have an impact on revenue in 2H21 with full qualification during 1Q22.

Tower has also extended its lease on Japanese building and facilities through to 2032.

Tower made the the announcements as it announced fourth quarter and full year financial results.

Tower announced 4Q20 revenues of $345 million, reflecting 11 percent quarter over quarter and 13 percent year over year growth. The company made a net profit of $35 million compared with a $15 million net profit in the prior quarter and $21 million net profit in the 4Q19. Revenues for the full year 2020 of $1.266 billion, reflected 3 percent growth.

Tower is guiding for a 1Q21 revenue of $345 million plus or minus 5 percent and for sequential revenue increases throughout 2021.

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