Tower Semiconductor Sets Sights on Sustained Growth in 2025
Tower Semiconductor, a leading provider of semiconductor foundry services, has concluded its strong performance in 2024 with a revenue of $1.44 billion and a net profit of $208 million. In its recent conference call, the company's CEO, Russell Ellwanger, expressed gratitude to employees, customers, and supplier partners for their collaboration, while also highlighting Tower Semiconductor's vision for future growth.
According to the company's financial highlights, Tower Semiconductor achieved an 18% year-over-year revenue growth in 2024, with a fourth-quarter revenue of $387 million representing a 10% year-over-year increase. The company has guided its first quarter of 2025 to be around $385 million, with a potential range of ±5%, indicating a 10% year-over-year growth.
The company's revenue breakdown by technology and end-market application shows that RF infrastructure revenue was approximately $241 million or 17% of the corporate revenue in 2024. Tower Semiconductor targets strong growth in the RF infrastructure revenue for 2025, driven by its SiPho technology which saw a more than tripling of revenue in 2024 to $105 million.
RF mobile revenue was around $418 million or 29% of the corporate revenue in 2024. While Tower Semiconductor anticipates some decrease in RF mobile revenue for 2025, mainly due to forecasted declines in the Android market, it targets growth within its more advanced 300-millimeter platform.
The company's Power management and discrete revenue was around $426 million or 36% of the corporate revenue in 2024. Based on customer forecasts, Tower Semiconductor targets growth for its Power Management business unit in 2025, with the highest growth expected for advanced 300-millimeter platforms.
Notably, the company's CEO highlighted that the discontinued Fab 1 legacy 150-millimeter activities are expected to decrease discrete business revenue in 2025. Despite this, Tower Semiconductor remains optimistic about its future prospects and has outlined steps to ensure sustained growth as it enters 2025."
