Israeli contract chipmaker Tower Semiconductor forecast first-quarter 2025 revenue slightly above estimates on Monday, on expectations of resilient demand for its chips from the automobile sector.
The US-listed shares of the company were up 1 per cent in premarket trading.
Tower makes analog and mixed-signal semiconductors used mainly in automobiles for “fabless” firms, which design chips but outsource their fabrication.
Despite the automobile sector struggling to clear inventory since its excessive stockpiling during the pandemic, a trend exacerbated by a slowdown in demand for electric vehicles in the past year, Tower Semiconductor has been resilient in recent quarters and has continued to supply its chips.
The chipmaker forecast first-quarter revenue of $358 million, with an upward or downward range of 5 per cent, slightly above analysts’ estimates of $357.5 million, according to data compiled by LSEG.
Tower posted fourth-quarter revenue of $387.2 million, which was in-line with estimates.
Net profit for the quarter ending December 31 was $55.1 million, below estimates of $58.7 million, due to taking on its portion of incremental costs of the greenfield chipmaking plant in Agrate, Italy.
On an adjusted basis, the company reported quarterly profit of 59 cents per share, compared with analysts’ estimates of 52 cents per share. Reuters