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Tower Semiconductor Forecasts Q2 Revenue Above Estimates on Wireless Chip Demand

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Tower Semiconductor (TSEM), the Israel-based contract chipmaker, forecast second-quarter revenue slightly above Wall Street expectations on Wednesday, buoyed by steady demand for wireless communication and power management chips.

The company, which specializes in analog and mixed-signal semiconductors, is seeing record growth in radio frequency (RF) infrastructure technologies, driven by expanding wireless and sensing applications—even as demand in automotive and industrial sectors remains uneven.

Key Forecast and Financial Highlights:

  • Q2 Revenue Guidance: $372 million (±5%), above analyst estimates of $371.3 million (LSEG)

  • Q1 Revenue: $358.2 million, in line with forecasts

  • Q1 Adjusted EPS: 45 cents, beating estimates of 38 cents

Growth Drivers

  • Strong demand for RF infrastructure chips used in wireless communication is a standout contributor to revenue.

  • Despite choppy conditions in the automotive and EV sectors, Tower is finding support in consumer electronics and industrial applications.

The company is also expanding production capacity at its Agrate, Italy facility, a move that increases short-term costs but is expected to bolster long-term output and growth potential.

Tower reaffirmed its full-year outlook for sequential revenue growth across quarters, signaling confidence in its product pipeline and end-market stability.

Market Reaction

Despite the strong performance and upbeat forecast, Tower’s U.S.-listed shares slipped about 1% in premarket trading, possibly due to broader market sentiment or cost concerns related to facility expansion.

Tower’s continued focus on analog and RF chip technologies—especially amid global interest in connectivity and power efficiency—positions it as a resilient player in a diversifying semiconductor landscape.

Infineon Lowers Revenue Forecast Amid US Tariff Uncertainty

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Infineon Technologies, Germany’s leading chipmaker, revised its full-year revenue outlook downward on Thursday, citing uncertainty around looming U.S. semiconductor tariffs and unfavorable currency exchange assumptions. Despite reporting stable order intake, the company now anticipates a more cautious fiscal year ahead.

What’s Behind the Cut:

  • U.S. President Donald Trump has warned that chip tariffs could begin at 25% or more, though no implementation timeline has been confirmed. This lack of clarity has clouded business planning for chipmakers like Infineon.

  • As a precaution, Infineon CEO Jochen Hanebeck said the company applied a 10% haircut to its expected Q4 revenue projections.

  • Without the haircut, Infineon said its forecast would have remained “essentially unchanged.”

Financial Highlights:

  • Fiscal 2024 revenue totaled €15 billion ($17 billion).

  • The company had earlier projected flat to slightly higher revenue for the current year but now anticipates a lower figure due to tariff and exchange rate risks.

  • It now expects an operating margin in the mid-teens rather than the previous mid-to-high-teens range.

CEO Commentary:

“Given that order intake still shows no signs at all of slowing down, we can only guesstimate the effects of tariff disputes,”
said Hanebeck, highlighting the unpredictability of U.S. trade policy on semiconductor supply chains.

Broader Context:

Infineon joins a growing list of global tech firms affected by U.S. protectionist policies. The prospect of rising tariffs is pressuring supply chains, pricing strategies, and global investment decisions, particularly as semiconductor demand remains strong across sectors such as automotive, consumer electronics, and industrial systems.

TSMC Reinforces Commitment to Taiwan with New Domestic Fab Amid Global Expansion

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Taiwan Semiconductor Manufacturing Company (TSMC) reaffirmed its dedication to its home base with the opening of a new chip manufacturing facility in Kaohsiung, Taiwan. The factory, which will produce the company’s most advanced chips using 2nm technology, is expected to create 7,000 tech jobs on the island. This announcement comes amid concerns that TSMC’s significant investment in the United States could dilute its domestic presence.

TSMC’s executive vice president, Y.P. Chyn, made the remarks during a ceremony at the new fab, highlighting the company’s ongoing commitment to Taiwan even as it expands globally. The new facility is slated to begin volume production of 2nm wafers in the latter half of this year, according to the company’s schedule.

Despite its $100 billion investment plan in the U.S., TSMC and the Taiwanese government have both emphasized that a substantial portion of the company’s production will remain in Taiwan. TSMC, often called Taiwan’s “sacred mountain protecting the country,” plays a pivotal role in Taiwan’s economy, and the company’s officials reassured that Taiwan will continue to be at the heart of its operations.

While Taiwan’s Premier Cho Jung-tai expressed gratitude for TSMC’s assurances, noting that the company will always remain a “national team,” the company has also made clear that it intends to meet the growing demand of global customers, which has driven its expansion.

TSMC’s growing presence in the U.S. follows pressure from U.S. President Donald Trump, who has repeatedly criticized Taiwan’s semiconductor dominance and called for more manufacturing to return to the U.S. The concerns over potential tariff impositions highlight the delicate balance TSMC must strike as it manages its global footprint while maintaining its critical role in Taiwan’s economy.