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Tower Semi releases transcript of Q2 2026 earnings call

PUBT·08/05/2026 09:57:11
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Tower Semi releases transcript of Q2 2026 earnings call
  • Tower Semiconductor discussed Q2 2026 results on Aug. 4 with CEO Russell Ellwanger, CFO Oren Shirazi, SVP Noit Levy; analysts attended.
  • Revenue USD 460 million; gross margin 30%; operating margin 20%; net margin 20%; Q3 revenue guidance midpoint USD 520 million.
  • Updated 2028 model: revenue USD 3.6 billion; gross margin 45%; net margin 33%; opex ratio targeted near 7% despite 40%+ higher R&D.
  • Japan dual-track 300mm expansion: Track 1 repurposes Arai (Fab 6) for SiPho, advanced packaging; production readiness targeted Q4 2027.
  • Track 2 new fab adjacent to Uozu (Fab 7) targeted installed and functioning by Q4 2028; aims to more than quadruple Japan 300mm output.
  • Silicon photonics revenue up 60% Q/Q; Q2 annualized run rate above USD 680 million; targeting USD 1 billion run rate in Q4 2026.
  • Management cited about USD 1.3 billion of silicon photonics revenue under customer contracts for 2027; capacity expansion described as “spoken for.”
  • SiPho wafer-start ramp from the USD 920 million plan expected to reach full ramp in Q4 2026; full financial effect anticipated in Q2 2027.
  • RFSOI transition to 300mm cut 300mm RFSOI revenue 14% Y/Y; management expects 3x 300mm wafer starts by mid-2027 versus Q2 2026 shipments.
  • CFO said model sensitivity is highest to wafer selling prices; also depends on tool installation and qualification timing, 85% utilization assumptions.


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