Tower Semi invests to expand its manufacturing capabilities
The company is planning a capacity expansion for 200mm and 300mm to answer the exceeding demand forecast.
In its fourth quarter report, the company says that it will invest an additional USD 150 million in the coming 12 months to purchase machinery and other assets. in order to increase its manufacturing capacity. The capacity increase will mostly take place in Fab2 in Israel, Fab9 in Texas, USA, Fab5 in Tonami, Japan and Fab7 in Uozu, Japan. The additional investments are driven by very high confidence in customers’ demand which exceeds current 200mm and 300mm capacity. The company says that the equipment will begin to have incremental revenue impact during the second half of 2021, targeted to be fully qualified during the first quarter of 2022. Additionally, during the fourth quarter of 2020, the Tower Semiconductor, through TPSCo), extended its Japanese buildings and facilities’ lease contract to continue its lease at least through 2032. Revenues for the fourth quarter of 2020 were USD 345 million, reflecting 13% growth as compared to USD 306 million in the fourth quarter of 2019. Gross profit for the fourth quarter of 2020 was USD 70 million, 27% higher than USD 55 million in the fourth quarter of 2019. Operating profit for the fourth quarter of 2020 was USD 33 million as compared to USD 19 million in the fourth quarter of 2019. Net profit for the fourth quarter of 2020 was USD 31 million, compared to USD 21 million in the fourth quarter of 2019.