TSEM - Earnings call transcript Q2 2024 | Tower Semiconductor Ltd.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Tower Semiconductor Second Quarter 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded July 24, 2024.

Joining us today are Mr. Russell Ellwanger, Tower's CEO; and Mr. CFO. Shirazi, Oren like now the over conference I to Ms. to would turn Investor Vice Corporate Senior Levy, Relations President Noit of and Communications. Ms. Levy, please go ahead.

Noit Levi-Karoubi

Thank results conference of to Tower the welcome quarter XXXX. you, second call and for financial

would like this different uncertainties from results during be and Before we factors may begin, the to you XX-F could statements risk call Israeli subject and disclosed are that and and are and expected. well be that X-K those remind forward-looking as risk currently factors made with are Securities some to also the Form actual uncertainties I These available website. in as filed on fully Securities They with Commission Exchange our our filings Authority. cause

second be measures include reconciliation a quarter XXXX have the non-GAAP obligation accordance U.S. of the prepared information earnings results no Commission. the these tables with Securities certain of in update also financial considered with been in measures. to and assumes today's The earnings data forward-looking financial measures in financial and The to call these and the non-GAAP include GAAP financial statements. and established measures release G tables may under GAAP. and such financial Tower that any Please note full reporting as financial of that Exchange requirements related the Regulation explanation adjusted

into presentation We have integrated a for on webcast accessible is This company's today's deck our and that call. supporting also today's slide your conference website is complements convenience.

go like our Mr. I'd CEO, Russell Ellwanger. Now turn ahead. Russell, please the to to call

Russell Ellwanger

financial short value midterm, It which customer our conference Thank substantial which Welcome, quarter Noit. joining strategic was we performance of XXXX to quarter forecast, we in call. everyone. focus. in received you, a the Thank and increases in affirming our second delivered strong for earnings you

quarter $XXX target sequential we net beginning growth a stated quarterly reached XX%. throughout a the $XX resulting approximately million, of which with profit for of we margin publicly the of second we in million 'XX or to million on X%. quarter guidance XXXX, the in committed. a year quarter net increase This for of quarter, the and plus track second about revenue the for a Revenue At $XXX revenue in remain $XX of of a revenue with million, are with the minus achieved was compared this target third in first

driving the Moving enhancing of our the primary into sustainable second leadership brief our of drivers. I we innovation, a and market on year, will now focused growth remain half growth. present delivering overview further

RF XX% revenue. increased second have the future year-over-year We quarterly For quarter, next the of revenue in growth dramatically. represented infrastructure forecast anticipate increased revenue continued as months the total infrastructure XX foreseeable and XX% for customer the

SiGe we photonics TIA and demand an technology. the from I we and linked technologies. silicon robust ramp strongly AI hold of believe even the and drivers germanium is stronger and Silicon experiencing demand are our than is predominantly SiGe-based market expectations, growth expected seeing of to extremely expansion applications climbing for position. optical The is growth for robust prior where #X transceivers,

efficiency, and SiGe hardware. stands higher its lower to at it applications AI ability technology making operate sectors AI performance and for due in higher power, various ideal out As demand to frequencies

new and to drivers, TIA products addition ramping In are the aggressively.

signal driven required experiencing Slide high by copper to active by cable, loss please shorter are example, the reach adoption AI. For connect need speeds see at the X, center an increased data lower for for

result million to alongside this cloud in is doubling increase computing. high transceivers above in due continued the and revenue traffic revenue. XXXG to data $XX exponential from exaction for in than is driven This AI, IoT, of in forecast the high in $XX XG high-performance XXXX demand data for also year. deployment more This to We revenue driving recent expect And from business customer present point, the from need increase grow that greater photonics targeted most million streaming and silicon very in XXXX. by XXXG centers services computing, would

transceivers advancements debate computational applications. network the infrastructure them for leverage cost making These SiPho-based upgrades and higher and essential lower offer efficiency, growing

products Looking forward, customers XXXG per XXX continues with customers, specific collaboration transceivers, X.X prototyping second are several of very demonstrated lane program per in active tight in solutions. lane per X.X with gigabit targeting terabit having we R&D already market-leading terabit

an delivered incorporating second material. and initial market-leading new quarter, breakthrough showing samples with we to the During a advanced customer performance architecture

datacom, progress SiPho X, in optical based is engagements sensing and Please AI Slide wave growing differentiated and a to occupy frequency leaders I market switching and the ecosystem with continuous of see with foundry leaders we existing products, silicon computing, we other Beyond applications. #X believe on good LiDAR. modulated emerging photonics-based continue automotive where There make in position. quantity

to we demand seeing additionally XXX-millimeter Based are the have strides to bringing solutions version flow our significant XXX-millimeter with applications. customers, silicon happy SiPho we including kits qualifying at advanced high-performance for on our the and to market design certain was SiPho strong our And available San customers, Antonio successful some are lead delivered we that novel very are process report made a SiPho from of in platform and facility. break-through our

applications, and very addition meet month San in this customer in that ensure short- capabilities added the we SiPho providing long-term to XXX-millimeter bullish. should with for demand for Antonio novel The combined SiPho capacity, which can we capacity, these are

the XX% QX, For revenue increased represented approximately the mobile of and SOI, quarter. revenue, total during XX% RF year-over-year RF predominantly

to Italy our demand. to utilizing Japan, in per fully SOI RF and [indiscernible], plan capacity currently continue SOI the increased through are to this transition customers We RF support XXX-millimeter Agrate, millimeter

advanced in strong SOI efficiency also quarter, RSC, high RMC for not RF types TPS XX power which offer most X second only factors. exhibits shipped handling industry-leading optimum we our scaling but technology, and for Agrate the During enables

market, the for year. QX, are Power from total quarter. of business this we growth XX% For strong remainder and increased subsequent to in XX% during and Within ramp happy IC continue capacity continued demand the out We this initial representing report our fab the are in qualification revenue To expected of XXXX. QX, revenue customer seeing anticipate through taped demand, New the progress our already technology. XXX-millimeter to prototypes with good Mexico at meet qualify new we

Fab Our fab second operation show due for X, and we X, are XX-inch previously Fab to silicon was XX%. quarter into will for about that X-inch X to about was great X, QX ramp X-inch X XX-inch about XX% silicon was Fab with within the loaded. demand Fab about as the XX% be about photonics. XX%, Fab about Power. germanium XX%. in at from at X-inch Fab was utilization X, consolidated at to the and recovery Fab supplying factory announced, expected continuing X rates X, substantial [indiscernible] was fully XX%,

social a ESG and our and We to report. released our This magnify sustainable milestones part a environmental role our mid- citizens. ethical targets world world. and practices our measurable commitment our we sustainability, highlights report updated and achievements report as society short-, Today, doing environmental, towards social ship, on long-term focus governance, corporate to with responsibility, and

Shirazi. that, join to any towards report, Oren, sustainable you more invite to our Mr. We Oren on future. you [indiscernible] CFO, equitable time welcome and a those turn please? us our I'll With and comments journey our we as

Oren Shirazi

I review. financial Hello, results, everyone. released quarter which we second XXXX Earlier will today, our

First, followed and the P&L highlights, analyzing by cash our balance by sheet report.

prior profit million reported million same over $XX we quarter of second profit operating which XXXX, over up the million gross $XXX higher quarter, $XX revenue period. million, the in the For resulted $XX higher and of

to profit million. million, profit quarter, Operating received Japan reorganization Gross grant $XX compared which $XX as million was $XX to due prior in for of the the relation and totaled and completed year. higher $X million the previously to was announced QX million included gross last income in profit restructuring operation $XX

noted Net was and higher $XX diluted and earnings is million, $X.XX the share. operating prior quarter quarter's of per Net in was before. million net profit profit. included impact profit $X.X basic than profit earnings and base reflecting The prior Japan $XX operating from million diluted per or share $XX million $X.XX reorganization

and and balance future CapEx cash sheet plan. to Moving

Current end last of comprised year, fixed billion $X.X 'XX, short-term and than the X.Xx machinery As reflecting of QX to $X.X sheet primarily as to for $X.XX of last totaled assets, our same the of strong equipment, are balance billion X.Xx at period period assets $X.X billion compared by the current for assets. which same very assets current is and year. larger ratio, multiple compared liabilities mostly assets billion of the

$X.X Shareholders' $X to billion a XXXX. the billion to total at of billion as at $X.X the same compared equity of reached QX December of year end compared and 'XX end period last the of

Our strong that are opportunities following the to financial plan to investments vision. for enabled aligned strategic our us position

announced for in STMicro approximately other cash make the to CapEx Agrate, factory following million the Italy, previously investments required XX-inch aggregate of allocated One, total was in and partnership. equipment $XXX items

and of required As have the placed XXXX. date be million remaining X of the the purchase us $XXX for paid we and we in namely quarters, to other to end to items paid which until have expected today, all dated the the CapEx CapEx orders towards are $XXX already million plan, coming of equipment

enabling Two, customers, have fab and 'XX. that New invest $XXX be paid in in until capacity XXXX, addition, as items to capabilities ramp up amounts to other recruitment for Intel's to own and Mexico, acquire during will us our to previously we we in announced, committed million fab are up which to and CapEx 'XX

capacity annum. at And to our enable to from about wafer level increase and and $XXX to Furthermore, change support better to XX-inch global from we our are lastly, more we our and investing expect per million SiGe our to mix our our expand capability and and especially baseline capacity in a maintenance perspective. fabs million mix remain offering offering, product our technological in X-inch sites $XXX technology various other SiPho assets margin a CapEx reach tools to our and flexibility, enhance customers to

at note model target the previously that within company $X.XX facilities billion investments business above which could the New result annum of our be contained achieved all in In by our $XXX and and November. and aligned we our annual $XXX outlined profit of per financial revenue million net by profit. and that facilities wish our capacity [indiscernible] operating I our presented loading existing strategy model, annual million to to in are the as Mexico could

I'd Now back to turn to operator. call like the the

Operator

from Benchmark. The of Acree first question Instructions] is Cody [Operator

Cody Grant Acree

aggregate and as AI progress. maybe number AI an active at the you take if total shot you copper step exposure? your a far a of maybe germanium, on cables back as give then Silicon Congrats Sipho, Could could a maybe to exposure. Russell,

Russell Ellwanger

XX% But all AI A it's type being what me hard for by driven In about now that. I bit to that have difficult We somewhat assume don't really we're of is demand. say. little granularity. do probably that honesty, right to shipping of

to, that we everything center. to integrators ship the I customers we data that supply ship within mean the basically

AI not really, something I and So much it's a for driven, say to basis. me AI-driven on specifically how is granular can give not

we such that this is big know to a for that of driving demand AI having year the lot XXXG. is and an Certainly, serving AI a and extent what to drive, is XXXG acceleration big of we're gone speed increased

but we're expression, So XX% I but assume that's least of the somewhat shipping, proctological. at excuse what

Cody Grant Acree

if any impact to of Maybe platform active Sure. X obviously versus has optical push talk Spectrum NVIDIA your Are you a in NVIDIA's about their push activity. on cable seeing copper can Ethernet. copper with activity? optical big you

Russell Ellwanger

for we to That's, buyer. would say It's fairly would #X shipping to fact a optical not customer very within us. NVIDIA I one But position NVIDIA I'm known. for that assume not active the big the think, we're NVIDIA, that NVIDIA as saying. copper using how certainly is cable. big to be is stated, how Certainly, well And me much who. much end say necessarily transceivers, a is Certainly, for have

hitting that that. assume So maybe one we're would into

Cody Grant Acree

utilization. guess I Russell, And

said XX%. think I you that right? that Is was

Russell Ellwanger

me look. Let XX%.

Cody Grant Acree

XX%. It's

Russell Ellwanger

QX. or Substantial showing I'm in utilization substantial higher will show

Sipho So utilized on full. it's that not are could be shipped flows -- more there photo in SiGe. X X everything in flows, QX, outside might but can that, I for ship those and be those that mean on there expect of bottlenecks layers we'd fully we constrained for

Cody Grant Acree

And to XXX-millimeter, I that transition is guess, how progressing? the

Russell Ellwanger

at don't are well going we're that doing high get as different released want application typically stated that at being to well PDK material samples there SiPho with a very we very, done Yes, be unique very into that it's so performing and with this I I very than would point. XXX-millimeter. that a as shipped

capacity there stated, and are had in progress Walsum as have very [indiscernible] Antonio. And as past. factory the there activities in The we're well good qualifying the San

Operator

question Craig-Hallum. is Richard next from The Shannon of

Richard Shannon

I'll start off here. I RF in with infrastructure X think the business

sense Maybe do baseline some driver a business. which of just I of good kind share you have get the You're this a Tower very forward Can talking strong gains. about market there? want here semi to and you results drivers degree forecast -- sense is a versus of in TA and the the potentially growth to

Russell Ellwanger

all didn't In because share of past. the area the it photonics, gain it's silicon exist in

So served multiple -- and lot a the bit of just customers. market of case, right? we're and which being It's of of continually not a share revenue billions It's that's to dollars fictitious. of a shipping increasing quite gaining and new

So it's exist. mean, it's best very share growth will. entering a have, exist market by is hence, there, market didn't always something right? is thing and if that new a very strong nice you didn't I that have The to before, sharing way to which markets

I germanium, not is area sure. the am there's of silicon In or gain share not? -- it

#X position optical stated, believe As good for of number the a have in transceivers. to we years

hard gain. the with customers you lot to major that and strong a customers. is maintain is market thing when you're your bit and you're have growing with demand, The to a #X, be little share has big when So them of it's strong

So happening optical a what's time. many before. active I it's active been I cable, long about increase. has demand and long needed sampled really cable there additional talked think products are weren't for And a mean that isn't that for driven share now again, gain, copper a have people time necessarily

because in to was be many need very would really speeds, the cases and the a the it's gain it to But AI-driven before. that share And X.XT, in cable, well, market in given retimers increase we the real. center that data for as weren't have the I consider serving again, XXXG, re-drivers

TIAs market customers, always just is optical, that pluggable itself, we the if they're will or Continually, new the know on within those much gains, the for as honestly already drive I not we from serving. serve getting that and any getting far core drivers most As biggest the and for we someone we're nominally gain within that part, sitting products the have don't stronger. that providing the we're share there the it. customers some customers But gaining do share

So a are drivers and the for share within in the pluggable little the bit difficult increase that that itself. in TIA to

that's pluggables increased, a the demand fact the of thing. for But having good

that answers If you're Richard, long sitting at have your question? that as sustain grows, XX%, and share, XX% market market good as share, that you market Hopefully, very you growth.

Richard Shannon

the here. perspective about the past of great I And It in big on this here. second really long does maybe into photonics look datacom outside does. question I opportunities nice My here FMC. the photonics. some to how for adding question in I'd transceivers years? few appreciate talked the the of You degree about TAM And the guess growth much specially is all there. term curious silicon frame silicon TAM to What see to like thinking is what that exist outside like that? with for datacom? But automotive applications a are picture

Russell Ellwanger

think at I substantial. you're it's looking long-term quite If TAM,

I 'XX, think 'XX, at it's looking be 'XX, you'd don't substantial. If very

activity, going big activities I we the not least and before that market, would the automotive into then and ramp, think we're continuing doing beyond. advanced don't LiDAR, very, very a for see, at but in XXXX very automotive, the For 'XX starting

There's what that pluggable, within SiPho we considering be are other applications conventionally example. chip not for sitting would a the

SiPho Some at of is those in looking capability an switch. optical active that are

now. a of mean But switches market sitting submicron data do side. part I is don't digital we that SAM, within on center. So have it's that the the served deep don't a right we

within is but how And an increase a that's switches. see data our But increase SAM in it's -- activity that's in ultimately an now, center, right optical there lot SAM. and successful it of on is we'll again,

exist applications big new kilometers such about other that stated, And versus market all large. get well optical there is for lead diameters, very as silicon a cable photonics as will not specific talked expect at totally, Anello. served customer We've as that's before we did

for data TAM I remain is the latency of center So growing and needed is center as data the of probably, don't AI. biggest outside all data portion the will by it. center, AI, would a to of the say the the needed part it, drive But want center by of I that big much AI TAM. How overstate reduced especially, that within data incredibly, speed is

the of I is that the data growing. insignificant. we're doing, that SiGe that, of is data we're growth think, than the will And that doing, it's SiPho be certainly So outside proportion, that outside of bigger much on center TAM the always not center but the

Richard Shannon

for question a Maybe Great. quick Okay. Oren.

shift margin mix is here sort And why good degree gross is other give fall-through sustainable? pretty Your some dynamics? in you quarter. a of of to or second there what that strong the sense us is Can

Oren Shirazi

also the profit. above very good Russell said Yes. SiPho what incremental XX% gross average way margins the incremental and relate to of SiPho about I the model are

why up anything that incremental is this generally some we mean, because gross but XX%, onetime. the it's special. very this mix I to had you're see richer So speaking, than XX% you nice correct, and a anything came special, very that not quarter profit previously, revenue be not of

Richard Shannon

enough. Fair One Okay. question. last

Russell. Sorry,

Oren Shirazi

special. Yes, sustainably it's

Richard Shannon

Sustainably special.

will One last you, out the I Great. jump Okay. of line question, for Russell.

XXs some plus had levels, much pretty would power at nice looking the you had IC and range level naturally in Power driven if in quarter. pickup And even per million second low back a obviously, by quarter some in a seen in business in quarter. the very Just what nice is base had here couple your first inventory XXs, IC you the assume a of look years, from you everyone $XX that revenue obviously build I the here,

to as the, what you we the see define then I'll crystal the affected Are years you look that? love ability Are near anytime back there. future? out here burn we see hear it, the currently? let to up I'll inventory still get you do I'd thoughts your in to call X timeframe, maybe but to those with levels And as X by your through ball, you

Russell Ellwanger

the For will think get we total that power numbers. yes, revenue, beyond previous I year's

For being starting we are that orders or built to we the although inventory presently, there's still much off see off, burned XXX-millimeter more get there.

last into had XX% the certainly, we been have it's big that But the we we in this more XXX-millimeter. quarter, And revenue. power I of advanced with is quarter, within would numbers coming had We said power a expected increase the see think our low. QX that growth stated platforms

we well. advancements do Although the continue on XXX-millimeter, as to

but don't hit that levels 'XX, know that same within we XXX-millimeter coming strongly, had than back we I And But previous more XXX-millimeter that the for see will it. make up we'll the years. in

Operator

question is from Hosseini next Mehdi of SIG. The

Mehdi Hosseini

recovery for [indiscernible] of you help SOI with the A understand refresh. the where follow-ups I'm inventory the overall think would start gain RF couple are And better Can are with me. the market up. how market pick inventory sort of When share you And dynamics. correction? some would letting do me tracking?

inventory dynamics, have when refresh? do with summarize just correct? against think you a the And how start inventory I your inventory the gain question, should Then end So follow-up. to I customers to about market expect share your

Russell Ellwanger

I was had demand strong stated last and we seeing quarter market that SOI. maybe RF very the what were beyond above seeing, for

in XXX-millimeter. the continue particular, see to advanced platforms We of that, for

nor have few the impacted I being quarters So don't we're impacted inventory we for past correction. on think been

Overall, for is mobile. supposed to growth be XXXX a year

would good inventory pretty itself, So is that the overall market the believe I in shape. analysts, they from for think

the customers, qualifying gains Agrate advanced factory. stated, of that for we newer and which in have strong up SOI, big very the platforms as seen at particular, robust is with for and XXX-millimeter, demand market the as and share bringing But that stated, drive was really RF some of

from addition at of -- product we'll Agrate had on quarter be RF the what XXX-millimeter base my in a factory SOI the of in shipping a Japan. to have plan in fourth amount we And reasonable

on being And would I versus should So a look year growth pretty SOI if business RF I 'XX, If see well. I see at strong for us. reasonable look overall the the SOI. at be 'XX RF growth very a as I 'XX,

I hit that see we're inventory don't being So by correction.

Mehdi Hosseini

Understood.

both operating exposure your is platforms smartphone system, to [indiscernible]. quickly, on both So

Russell Ellwanger

having I'm voice is Your bit time difficult hearing. muffled a very little for me.

Mehdi Hosseini

Sure.

I iOS? Android Sorry. is that RF your assume both in Should SOI and

Russell Ellwanger

good I think that assumption, would a be yes.

Mehdi Hosseini

Yes.

forma Okay. Increased for Oren, into a QX, and reported Great. basis, as that margin, the for follow-ups silicon And corporate then, to I higher of offset on here. correct margin gross gross Agri, GAAP which was margin closer you XX%? as mix assume Is you basis. cost photonics, margin And than and assume especially ramp that dilution gross a to on the that X 'XX. Oren, average has a it pro from follow-up you was QX was the

Oren Shirazi

under it Yes, do you pro What GAAP. is forma? XX% mean

Mehdi Hosseini

million, Okay. there I understand $X was a trying Because of adjustment. $X million to was just

I Just make get want sure to right. that

Oren Shirazi

amortization is you of ESOP, option employee stock This amortization of plan, mean?

Mehdi Hosseini

Yes. Yes.

Oren Shirazi

Yes. Yes.

yes. correct, you're So

Mehdi Hosseini

Okay.

of offset increase RFSOI XXX-millimeter the the upgrade? the mix from comes could fab dilution in Now have ramp-up, that

Oren Shirazi

your question QX? referring to Is

Mehdi Hosseini

Looking margin start ramp contribution from into the higher the photonics, could 'XX, there? you from of Agrate, help the production dilution from as of fab, the new fab some specifically new offset silicon infrastructure,

Oren Shirazi

be increased this, headwind. in remarks, should yes. next impact year FIFO the should growth dilute the and be Yes, prepared higher be Agrate it the than impact, it definitely, margin scope factory from than his the in it start, that much higher described, will Russell you And SiPho the call should from

Operator

of The next Thompson from Research. Investment Zacks question Lisa is

Lisa Thompson

X% revenues. contributed me Is that thought just said right? that you Let ask silicon quarter, about you. last I photonics of

Russell Ellwanger

Yes.

Lisa Thompson

So what would quarter? been have this

Russell Ellwanger

but believe, revenue increased about stated year, I I against What throughout that so would remaining quarter-over-quarter. quarter, we the X% that increasing would SiPho somewhere be the is last quarter-over-quarter, revenue it see

a We number QX. specific out haven't for put

of SiPho the percentage So say for now over what over $XX year, million X% not that's in I be little that would much But it a be would below would try really revenue for be X be XXXX, the we to don't $XX can $XX that over I said could How I to out want expect certainly above. will is expect figure bit it million that that and million. right themselves.

Lisa Thompson

it's believe transceivers, mostly going like I optical -- pluggable Okay. mostly right? And at current, into

Russell Ellwanger

now of optical all transceivers. is pluggable right almost believe it I

Lisa Thompson

speeds And the feel what have XXX is, for a do XXX, breakdown Okay. million? you

Russell Ellwanger

between I the It's and top going know don't head. XXX, XXX it think but specific a some is even is but breakdown the XXX could out, my I of off probably of bulk find into XXX, and XXX. I

Lisa Thompson

X did something . Okay. say having X.X And interesting customer. that a Is about you terabyte.

Russell Ellwanger

No, Please go just ahead. Several, joking. several.

Lisa Thompson

Right.

is X that that? on working customer So

Russell Ellwanger

No.

Lisa Thompson

And then think off do Okay. how far get we you to X.X?

Russell Ellwanger

far the as As calendar?

Lisa Thompson

from now. year A Yes.

Russell Ellwanger

a in bit I 'XX. that fourth here, I'm quarter shipping Maybe aggressive but think be of we'll the

Lisa Thompson

more will And than X that customer be X? or

Russell Ellwanger

At least X.

Lisa Thompson

Great. Okay. .

Russell Ellwanger

a do high volume the We're shipping think very in the thing fourth quarter, quarter. I in but fourth

Lisa Thompson

maybe? Samples, samples

Russell Ellwanger

Certainly, samples, will I some I be of that I think think wrong, actually it's go could I data believe. center. but into but possible.

Lisa Thompson

then higher in go just the is higher to it higher-speed . way that possible accelerates your right. the is the that market All prices given growth shifts it as products. And as the speeds, --

Russell Ellwanger

in. continue percentages, XX The To very, XX to doubling, high more growth at pretty no, dollars, more next which continue XX But absolutely than confident you're than -- year, accelerate. I I that we're right? those as absolutely. as from in absolute a going, absolute will double think rates And it we dollars, rate. at when are type very and that's to you're to those think far said

Lisa Thompson

you on like margins think progresses? down as you is. where do they'll it time And Keep be beating it

Russell Ellwanger

us on the I down ever have don't margin. beat customer would think partners we

people But value. the that somebody with both pay it scale to from for partner certainly the produce the volume value. is And and benefit come more costs higher down. you economies that You prices of

must pricing very it come yes. margins lead It time over strong, So customers. and should. with But remain down some will while

Lisa Thompson

from question next follow-up Shannon The Richard a of is Craig-Hallum. question

Richard Shannon

And My can make tightness our you when any those wondering Let I'm by area. there's on me some looking here. first Russell, one, XXX-millimeter at capacity. ask capacity, in more specifically comments relieved. if product get is any the your

you've even in comments on photonics would be relief and could call, think help RF silicon SOI when and I where XXX-millimeter. this talked us tightness power gets it to Any about there's hear. understand great you and

Russell Ellwanger

time there's Agrate It's we digit. utilized tightness real production that's factory, from have at to in that. I presently, fourth stated relieved fully revenue that And single SOI. XXX-millimeter and that we're and quarter stated the the not in being So target RF

of looking So a at fair it's -- amount we're relief there.

that the a fourth a in and was had previously, would the first, once on I of margin start about quarter question next year. first year expected good reasonable ramp What be revenue, the you new of shipping to taking that headwinds start a said the relieved to quarter incremental fourth by to we from taking the asked next So to that. second to second able set, but be tool the of depreciation we absorb

of basis SOI on type a the we quarter quite that RF expect a of without specific statement numbers, within So bit shipping the factory. next by monthly of a second Italy out of year

prototypes we're as going activity, relief for advanced far with in power, Albuquerque XXX-millimeter stages the capacity stated have As is the there is the customer where the in now. that from we that of capacity corridor very Intel and I

that qualified we that's be the very and that believe activities we'll capacity can factory. there, parts shipping first half of we a advanced probably have quite substantial amount And start that of We at within there XXXX. growing

what end customer we the entire large it's for experience to on agreement just new and started demands. X power power any customer us growing But of a we early on management, entire on, X So that's the their relief develop in agreement meet within capacity really length do. the not platform than past, because That XX-nanometer for it's an relief we market did management. more and the on reasonable a now out of factories very definitive arm's big to we that of capacity demands was got was Intel bonuses with the an have

interesting we capacity map with that is other the the power yet for really have increased as flows have our well not and So management but road announced. on capacity activities publicly Albuquerque corridor some potentially pretty

that just within initial likely be question? it, management We power customer activities that without answer more commitments but your Did hope. there will have than factory. it on end I most

Operator

are questions at no further concluding Mr. There this make you to statement? time. like your Ellwanger, would

Russell Ellwanger

With pleasure, thank you.

to for everybody. tracking questions revenue stated our remain good we summarize, our Thank are third quarter sequential XXXX, performance listening. you committed and To for really quarter well by guidance. as evidenced second you very throughout from of growth thank So target and

recovery demand the both our we rapidly to addition optical in expanding robust from are In experiencing power a existing of and space. advanced growth new mobile customers platforms, within the and

enhancing first-tier position innovation to strong partnership order prepared developing sustainable photonics foundry deliver market. with remain to explode the passive optical within years continue our in silicon and the choice and multiple platforms on leading AI uniquely both active to be coupled hence, We for in of us focused of in have growth. Our customer market transfer the transceivers leadership

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Operator

for conference Tower Thank This call. Thank concludes your participation. Semiconductor you you.

ahead You and disconnect. may go

Tower Semiconductor (TSEM) 24 Jul 242024 Q2 Earnings call transcript