Tower Semiconductor Q1 revenue falls on weak demand
FILE PHOTO: The logo of Israeli analog integrated circuits developer, Tower Semiconductor is seen at their offices in Migdal HaEmek, northern Israel, February 28, 2022. REUTERS/Amir Cohen/File Photo
Israel-based contract chipmaker Tower Semiconductor reported a 7 per cent decline in first-quarter revenue on Thursday (May 9) reflecting muted demand from the industrial and automotive sectors.
Over the past few quarters, semiconductor firms are dealing with a supply glut as they focus on clearing excessive inventory mainly in the automotive industry, hurting companies like Tower which makes analogue, mixed-signal chips and sensor technologies.
French-Italian firm STMicroelectronics is one of the latest chipmakers to lower its full-year guidance due to declining orders.
Tower Semiconductor reported revenue of US$327 million for the three months ended Mar 31, down 7 per cent year on year.
It forecast second-quarter revenue at US$350 million, with an upward or downward range of 5 per cent.
It posted adjusted profit of 46 cents per share for the first quarter to top the 39 cents per share expected by four analysts polled by LSEG.
