TSEM Tower Semiconductor (TSEM) Q2 FY25 earnings call
Tower Semiconductor delivered strong Q2 FY25 results, exceeding revenue and profit expectations, and is poised for accelerated sequential growth in the second half of the year. This momentum is primarily fueled by robust demand in RF infrastructure, particularly Silicon Germanium and Silicon Photonics for data center and AI expansions, alongside a significant recovery in the RF mobile segment. The company is actively investing in capacity expansion and advanced R&D to support forecasted customer demand and maintain its market leadership.
You’re reading a preview. Opening the full call uses 1 concall credit.
Sign in to use your monthly call allowance.
TSEM operating KPIs by quarter
| KPI | Dec 2024 Q4 FY24 | This call Jun 2025 Q2 FY25 | Sep 2025 Q3 FY25 | Dec 2025 Q4 FY25 | Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Change vs prior quarter |
|---|---|---|---|---|---|---|---|
| Utilization rate Fab 2 and Fab 9 | ~55%Fab 2 and Fab 9, where we are driving SiGe and SiPho capability -- capacity activities operated at approximately 55% utilization.Source: earnings call transcript | ~60%Looking at utilizations, in the second quarter, Fab 2 in Israel and Fab 9 in Texas, both operated at about 60% utilization while repurposing tools to now load high levels of Silicon Germanium and to begin the manufacturer of Silicon Photonics.Source: earnings call transcript | — | — | — | — | — |
| Utilization rate Fab 3 | 70%Fab 3 was at 70% utilization.Source: earnings call transcript | 85%Fab 3 is fully utilized at our 85% utilization model.Source: earnings call transcript | 85%Fab 3 maintained our model full utilization of 85% with growing activities for SiPho capacity.Source: earnings call transcript | 85%Fab 3 maintained our model full utilization of 85% and still adding capacity for increasing silicon photonics capability.Source: earnings call transcript | 80%Fab 3 operated at 80% utilization.Source: earnings call transcript | — | -5 pt |
| Utilization rate Fab 5 | 60%Fab 5 at 60% and Fab 7 300-millimeter at 90% foundry utilization with the highest process layers to date.Source: earnings call transcript | 75%Fab 5 was at 75% with rising demand for high-voltage power management and Fab 7 300-millimeter was fully utilized, well exceeding the 85% model.Source: earnings call transcript | 75%Fab 5 was at 75% utilization.Source: earnings call transcript | 75%Fab 5 was a 75% utilization.Source: earnings call transcript | 75%Fab 5 was at 75% utilization.Source: earnings call transcript | 75%Fab 5 in Japan was at 75% utilization.Source: earnings call transcript | 0 pt |
| Utilization rate Fab 2 | — | — | ~65%Therefore, while we are in the final qualifications and initial ramp of the repurposed fabs and added capacity, our third quarter utilization levels, Fab 2 in Israel operated at about 65% utilization.Source: earnings call transcript | ~60%For the fourth quarter, utilization rates were Fab 2 operated at about 60% utilization as we are now in the final stages of silicon germanium and silicon photonics capacity qualification for a variety of flows.Source: earnings call transcript | ~60%For the first quarter, utilization rates for Fab 2 at around 60% utilization as SiPho and SiGe qualifications continue.Source: earnings call transcript | — | — |
| Utilization rate Fab 9 | — | — | 60%Fab 9 was at 60% utilization.Source: earnings call transcript | 65%Fab 9 was at 65% utilization, presently in the silicon photonics and silicon germanium ramp.Source: earnings call transcript | 80%Fab 9 utilization was at 80%.Source: earnings call transcript | — | +15 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.