Tower Semiconductor forecasts upbeat Q4 revenue; unveils $350 million investment plan

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Israeli contract chipmaker Tower Semiconductor forecast its fourth-quarter revenue above estimates on Wednesday, driven by a recovery in demand for its chips, and said it plans to invest $350 million to expand capacities.The U.S.-listed shares of the company were up 7.5 per cent in premarket trading.

FILE PHOTO: The logo of Israeli analog integrated circuits developer, Tower Semiconductor is seen at their offices in Migdal HaEmek, northern Israel, February 28, 2022. REUTERS/Amir Cohen/File PhotoIsraeli contract chipmaker Tower Semiconductor forecast its fourth-quarter revenue above estimates on Wednesday, driven by a recovery in demand for its chips, and said it plans to invest $350 million to expand capacities.

Slowing growth in demand for electric vehicles has kept inventory levels for chips used in the automotive industry at elevated levels. Tower Semiconductor expects to report fourth-quarter revenue of $387 million, with an upward or downward range of 5 per cent, beating analysts' expectations of $379.2 million, data compiled by LSEG shows.

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