• The TSMC of specialty semiconductor manufacturing.

• The Foxconn for silicon chips.

• Analog & Mixed-Signal Foundry Services: Provides specialized manufacturing for integrated circuits that combine analog and digital functions for various industries.
• Radio Frequency (RF) Technologies: Offers fabrication services for high-frequency communication chips, including advanced RF SOI and SiGe BiCMOS processes.
• Power Management Platforms: Manufactures power integrated circuits utilizing specific BCD and LDCMOS process technologies.
• CMOS Image Sensors: Produces advanced image sensors tailored for a wide range of imaging applications.
• Non-Volatile Memory (NVM) Solutions: Integrates embedded non-volatile memory capabilities into custom chip designs.
• MEMS (Micro-Electro-Mechanical Systems) Production: Delivers manufacturing services for micro-electromechanical devices used across diverse applications.

Tower Semiconductor (symbol: TSEM) is a pure-play semiconductor foundry, meaning it specializes in manufacturing integrated circuits (chips) designed by other companies. Therefore, its customers are primarily other businesses (B2B).

According to Tower Semiconductor's public filings (e.g., their Form 20-F annual report), no single customer accounted for more than 10% of their revenues for the past several years. This indicates a diversified customer base and means that the company does not have publicly disclosed "major customers" in the traditional sense of a dominant revenue contributor.

However, Tower Semiconductor serves a broad range of companies within the semiconductor industry. These customer companies generally fall into the following categories:

• Fabless Semiconductor Companies: These are companies that design integrated circuits but outsource the entire manufacturing process to foundries like Tower Semiconductor. They operate across various markets, including mobile, automotive, consumer electronics, and communications.
• Integrated Device Manufacturers (IDMs): These companies design and manufacture some of their own chips but choose to outsource a portion of their production to external foundries, often for specialized processes or to manage capacity fluctuations.
• Government and Defense Contractors: Tower Semiconductor also caters to companies requiring specialized or high-reliability processes for defense, aerospace, and other government-related applications.

Tower Semiconductor's technology offerings support customers in diverse end markets such as RF (Radio Frequency) for 5G and wireless communications, power management (PMICs), CMOS image sensors (CIS) for medical, industrial, and automotive applications, as well as various analog and mixed-signal devices.

Russell Ellwanger, Chief Executive Officer
Mr. Ellwanger has served as Tower Semiconductor's Chief Executive Officer since May 2005. He joined the company when it was facing significant debt and led its turnaround and growth, achieving $1 billion in revenue within ten years. Prior to Tower, from 1996 to 2005, he held various executive positions at Applied Materials Corporation, including Group Vice President roles in Applied Global Services (AGS), CMP and Electroplating Business Group, and Corporate Vice President, General Manager of the Metrology and Inspection Business Group. He also served as Vice President of Applied Materials' 300-mm Program Office and General Manager of its Metal CVD Division. Before Applied Materials, he held managerial positions at Novellus Systems, Inc. (1992-1996) and Philips Semiconductors (1980-1992).

Oren Shirazi, Chief Financial Officer, Senior Vice President of Finance
Mr. Shirazi was appointed Chief Financial Officer in November 2004. He joined Tower Semiconductor in 1998 and previously served as Controller and Vice Controller. Prior to joining Tower, he was an Audit Manager at Ratzkovski-Fried & Co., which later merged into Ernst & Young (Israel). He is a Certified Public Accountant (CPA) in Israel.

Dr. Marco Racanelli, President
Dr. Racanelli was appointed President in 2023. Previously, he served as Senior Vice President and General Manager of the Analog Business Unit and Newport Beach Site Manager since 2018. He also held roles as Senior Vice President & General Manager of the RF & High Performance Analog Business Unit and Aerospace & Defense Business Unit since 2008. Dr. Racanelli held various management positions with Jazz Semiconductor, including VP of Technology & Engineering and A&D GM, before its acquisition by Tower Semiconductor in 2008. His prior experience includes technology development positions at Conexant Systems, Rockwell Semiconductor, and Motorola, Inc., where he contributed to bipolar, SiGe, and SOI development.

Dr. Avi Strum, Senior Vice President, General Manager of Sensors & Displays Business Unit
Dr. Strum is the Senior Vice President and General Manager of the Sensors & Displays Business Unit at Tower Semiconductor, a role he has held since 2018, having joined Tower in 2004. Prior to joining Tower, he co-founded TransChip Inc., where he served as President and COO. He also held various positions at Intel Corporation in both Israel and the US, and was an R&D Manager at Semi Conductor Devices (SCD).

Rafi Mor, Chief Operating Officer
Mr. Mor serves as the Chief Operating Officer of Tower Semiconductor.

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Tower Semiconductor's main products and services address several significant markets within the semiconductor industry, including analog semiconductors, CMOS image sensors, power management ICs, silicon photonics, and MEMS. The addressable market sizes for these areas are as follows:

• Analog Semiconductors: The global analog semiconductor market was valued at approximately USD 101.22 billion in 2024 and is projected to reach about USD 180.24 billion by 2034. Asia-Pacific held the largest share of this market, with USD 45.55 billion in 2024. Other estimates place the global market at USD 102.3 billion in 2024, rising to USD 2,959.1 billion by 2034.
• CMOS Image Sensors: The global CMOS image sensor market was estimated at USD 30.67 billion in 2024 and is projected to grow to USD 49.12 billion by 2030. The Asia-Pacific region dominated this market, holding a 44.6% revenue share in 2024.
• Power Management ICs (PMICs): The global power management IC market reached USD 35.5 billion in 2024 and is expected to grow to USD 64.8 billion by 2033. Another source indicates a market size of USD 39.39 billion in 2024, projected to reach USD 64.80 billion by 2032. North America held the largest market share of 35.42% in 2024.
• Silicon Photonics: The global silicon photonics market was valued at USD 2.69 billion in 2024 and is projected to reach USD 15.83 billion by 2032. North America held the largest market share of 35.27% in 2024. Another estimate values the global market at USD 2.86 billion in 2025, predicted to reach USD 28.75 billion by 2034.
• Micro-Electro-Mechanical Systems (MEMS): The global MEMS market size was valued at USD 15.36 billion in 2023 and is anticipated to grow to USD 29.05 billion by 2032. Other reports state the market size as USD 17.5 billion in 2024, with a projection to reach USD 30.8 billion by 2032. The Asia-Pacific region is considered the dominant and fastest-growing market for MEMS.
• RF Silicon-on-Insulator (RF SOI): The global Silicon on Insulator (SOI) market, which includes RF SOI, was valued at USD 1.29 billion in 2024 and is projected to grow to USD 2.55 billion by 2029. RF SOI wafers constitute the largest segment within the SOI market, powering over 90% of smartphones. The overall SOI market was valued at USD 1.85 billion in 2023 and is projected to reach USD 4.83 billion by 2031 globally.

1. Growth in Advanced RF and Photonics Technologies: Tower Semiconductor is experiencing strong growth in its Radio Frequency (RF) infrastructure business, particularly in optical transceiver demand, which has nearly doubled in revenue from Q3 2023 to Q3 2024. The company is ramping up production of 800 gig and 1.6 terabit products and is making significant investments in Silicon Germanium (SiGe) and Silicon Photonics (SiPho) technologies to cater to next-generation wireless and photonic solutions, driven by surging data center demand. Analysts forecast substantial growth in the SiPho business, with expected revenues of $215 million in FY25 and $300 million in FY26.

2. Expansion of Manufacturing Capacity and Increased Utilization: The company is undertaking a substantial investment program to expand its manufacturing capacity, including expansions in its San Antonio and Migdal Haemek factories, and has access to a 300mm capacity corridor in Intel's New Mexico factory. Full utilization of the planned capacity is expected by 2026, which could boost its revenue significantly, with projections of hitting $2.66 billion, approximately 90% higher than 2023 levels, upon achieving 85% utilization of new and existing capacities.

3. Strength in Core Technologies: Tower Semiconductor's core technologies, including power management and image sensors, are consistently generating year-over-year revenue growth, providing a solid foundation for further expansion. The company's focus on these high-value analog semiconductor solutions positions it well within growing markets such as automotive, wireless, consumer, and infrastructure.

4. Semiconductor Market Rebound and Increased Customer Activity: Despite previous market challenges, the broader semiconductor industry is projected for a robust recovery and significant long-term growth. Tower Semiconductor is also benefiting from increased customer activity, particularly in its RF Infrastructure business, supported by rising AI budgets. The company's strategic partnerships and strong customer adoption of its advanced technologies are expected to drive further revenue growth.

Inbound Investments

• Intel Corporation announced an agreement to acquire Tower Semiconductor for approximately $5.4 billion ($53 per share in cash) in February 2022.
• The acquisition was mutually terminated in August 2023 due to the inability to obtain timely regulatory approvals.
• Upon termination, Intel paid Tower Semiconductor a reverse termination fee of $353 million.

Capital Expenditures

• Tower Semiconductor's capital expenditures for fiscal years ending December 2020 to 2024 averaged $1.293 billion, with a peak of $1.607 billion in December 2023.
• The company is making significant investments in capacity expansion, including a total of $650 million to boost Silicon Photonics (SiPho) and Silicon Germanium (SiGe) capabilities, with an additional $300 million specifically for this purpose and targeting a tripling of SiPho shipments by the second half of 2026 for AI and data center demand. This includes investing up to $300 million for equipment to establish a 300mm capacity corridor at Intel's New Mexico facility.
• Anticipated capital expenditures for 2025-2026 are estimated at $500 million to $600 million for maintenance and new investments, maintaining an annual investment of approximately $400 million to $500 million to enhance 12-inch chip production capabilities.