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Tag: TSEM

  • Tower Semiconductor Ltd. (TSEM) Surged After Hours on Reports of Potential $6 billion Offer from Intel

    On February 14, The Wall Street Journal reported that Intel is working on an offer of nearly $6 billion for buying Tower Semiconductor Ltd. (TSEM). This resulted in an upsurge in the price of the company’s stock in the after-hours.

    The Israeli chip maker’s stock remained in the red during the regular session with a loss of 1.98%. TSEM closed the session at $33.13 per share at a volume of 1.05 million shares. Following the emergence of the buyout reports, the stock surged up by a huge 48.05% in the after-hours. Hence, TSEM stock was trading at $49.05 per share in the after-hours on Monday.

    Founded in 1993, the semiconductor manufacturer, Tower Semiconductor Ltd. has a market capitalization of $3.8 billion. The company was able to add 0.2 billion to its market cap on the reports of the Intel deal.

    The Potential $6B Deal

    As per reports, Intel is planning to build cutting-edge chip factories in order to take on the tech giant Taiwan Semiconductor Manufacturing, which is the world’s largest contract chipmaker. Intel pledged over $43.5 billion last year for spending on new chip fabrication plants in Arizona and Ohio as well as expansion to New Mexico. This all comes at a time when the world is facing a global semiconductor shortage, hampering the production of most devices including cars and smartphones. According to WSJ, Intel is currently nearing a $6 billion potential deal for TSEM. Furthermore, a deal could be announced as soon as this week.

    TSEM’s Recent Announcement

    On December 21, TSEM and Juniper Networks announced the world’s first silicon photonics (SiPho) foundry-ready process with integrated III-V lasers, amplifiers, modulators, and detectors. This will enable next-generation optical communications for telecoms and datacenters. Along with that, emerging applications in AI and LiDAR for autonomous vehicles.

    Juniper Networks, a leader in secure, AI-driven networks, is working on silicon photonics in partnership with the company.

    TSEM’s Financials

    In the third quarter of 2021, the company’s revenue increased organically by 40% YOY to $387 million.

    Furthermore, TSEM had an adjusted net profit of $45 million in the third quarter of 2021. Therefore, the adjusted earnings were $0.42 per basic share and $0.41 per diluted share in the quarter.

    Additionally, the company is set to declare its financial results for the fourth quarter and full-year 2021 on February 17, 2022. The company will host the earnings conference call on Thursday at 10:00 a.m. EST.

  • Tower Semiconductor Ltd (TSEM) stock is going up on Thursday’s pre-market?

    Tower Semiconductor Ltd. (TSEM) shares gained 7.64% to trade at $29.44 in pre-market on Thursday, June 24, 2021, as of this writing. Yesterday, TSEM’s stock gained 0.40% to close Thursday’s session at $27.35. TSEM shares have risen 37.30% over the last 12 months, and they have moved down 0.83% in the past week. Over the past three months, the stock has lost 0.91%, while over the past six months, it has declined 11.00%.

    Let’s see what are the latest news about TSEM?

    ST and Tower join forces

    On June 24, 2021, STMicroelectronics announced that it has reached an agreement with Tower Semiconductor to participate in its Agrate R3 300mm fab under construction at its Agrate Brianza site. Tower and ST will collaborate for an accelerated fab ramp-up, which is a key factor to achieve a high utilization level and thus competitive wafer costs.  In R3, ST will share a cleanroom with Tower, which will install equipment in one third of the space.

    Participation at 2021 IMS

    Tower Semiconductor Ltd recently shared technology papers at IMS 2021 and co-hosted the RFIC conference which held on Monday, June 21, 2021. The conference was co-hosted by RFIC, addressing emerging and high-volume semiconductor markets and the company demonstrated breakthrough figureof of merit performances using Tower Semiconductor process device technologies.

    Recent financial results

    OnMay 12, 2021, Tower Semiconductor released its financial results for the first quarter ended March 31, 2021.

    Q1 2021 financial highlights

    • Tower Semiconductor earned a revenue of $347 million inQ1 2021 compared to $300 million in the first quarter of 2020.
    • In Q1 2021, gross profit was$70 million in Q1 2021 compared to $53 million in Q1 2020.
    • Operating profit was $32 million in Q1 2021 compared to $16 million in the first quarter of 2020.
    • The company net profit was $28 million, or $0.26 basic and diluted earnings per share in Q1 2021 as compared to a net profit of $17 million or $0.16 basic and diluted earnings per share in Q1 2020.
    • Total operating cost and expenses were $37.34 million in Q1 2021 compared to $36.1 million in Q1 2020.
    • In Q1 2021, operational activities generated a cash flow of $87 million with an investment in fixed assets of $49 million.

    Use of Tower’s Hi-K VIA capacitor memory in AI-in-Imager products

    On May 6 2021, AIStorm and Tower Semiconductorsaid that AIStorm’s new AI-in-Imager products will use AIStorm’s electron multiplication architecture and Tower’s Hi-K VIA capacitor memory instead of digital calculations to perform AI computation at the pixel level.

    The Hi-K via capacitors reside in the metal layers and thus allow the AI to be built directly into the pixel matrix without any compromise on pixel density or size, and also results in saving multiple die packaging costs and power required of competitive digital systems.

    Conclusion

    The recent collaboration of STMicroelectronics with Tower Semiconductor is the reason behind TSEM early pre-market surge on Thursday. TSEM stock can continue to surge in the rest of the week, based on its recent developments.