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Tower Semiconductor Surges After Q1 Beat and $1.3 Billion Silicon Photonics Deals

Upfront payments from silicon photonics customers give the foundry rare visibility into 2027 revenue.

The logo of Israeli analog integrated circuits developer, Tower Semiconductor is seen at their offices in Migdal HaEmek, northern Israel, February 28, 2022. Picture taken on February 28, 2022. REUTERS/Amir Cohen
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Overview

  • Tower Semiconductor, which reported results Wednesday, posted first‑quarter revenue of about $414 million and adjusted earnings of $0.65 per share, both above forecasts.
  • The company disclosed $1.3 billion in 2027 silicon photonics supply deals, chips that use light to move data for AI data centers, with $290 million in prepayments to lock in capacity.
  • Customers also committed to larger 2028 orders with additional prepayments due by January 2027.
  • Shares jumped about 17% in U.S. trading to multi‑year highs after the earnings beat and contract announcements.
  • An unresolved March lawsuit from GlobalFoundries over 11 patents remains a risk as Tower scales photonics production for AI and optical networking.