TSEM Tower Semiconductor (TSEM) Q3 FY25 earnings call
Tower Semiconductor reported strong Q3 FY25 results and guided for a record Q4, driven by unprecedented demand for its silicon photonics and silicon germanium platforms in AI-driven data centers. The company is significantly expanding capacity with an additional $300 million investment, bringing total SiPho/SiGe CapEx to $650 million, to meet customer-requested demand and accelerate its long-term financial model. Management highlighted its leading position in SiPho manufacturing and development, with a focus on next-generation capabilities for 3.2T and 6.4T data rates.
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TSEM operating KPIs by quarter
| KPI | Dec 2024 Q4 FY24 | Jun 2025 Q2 FY25 | This call 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.