Tower Semiconductors forecast quarterly revenues against stable demand for analog chips

(Reuters) – Israeli Contract Chip Maker Tower Semiconductor Forecast First quarter revenues for 2025 slightly surpassed Monday’s estimates, hoping for forecasts of resilient demand for chips from the automotive sector.

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Tower makes analog and mixed signal semiconductors that are primarily used in cars for “Fabless” companies.

The auto sector has been exacerbated by slowing demand for electric vehicles over the past year, despite struggling to clear stocks since excessive stockpiling during the pandemic, but tower semiconductors have recently been They are resilient and continue to provide tips in the quarter.

Chipmakers forecast first-quarter revenue of $358 million at $358 million, with analyst estimates of 5% and 5% range, according to data compiled by LSEG. It’s just over $57.5 million.

Tower recorded fourth quarter revenue of $387.2 million.

Net income for the quarter ending December 31 was $55.1 million, below the $58.7 million estimate as it underscored some of the incremental costs of Agrate, Italy’s Greenfield Chip Making Plant.

On an adjusted basis, the company reported quarterly earnings of 59 cents per share, comparing its estimate of 52 cents per share.

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