Nicola Doyle's questions to Tower Semiconductor Ltd (TSEM) leadership • Q3 2024
Question
Nicola Doyle from Needham & Company asked for more detail on the applications driving strong demand for active copper cables (ACC), questioning if the demand extends beyond a single customer or application. She also requested an explanation for how Fab 3's utilization is expected to increase by 20% from its current 65% level.
Answer
CEO Russell Ellwanger clarified that the bulk of silicon germanium revenue comes from TIAs and drivers for optical transceivers, with ACC being an incremental growth driver. He could not provide granular detail on specific customer applications for ACC. Regarding Fab 3, he explained the utilization increase will be achieved by relieving specific process bottlenecks through targeted equipment additions and repurposing, which is part of the announced $350 million investment plan, allowing the fab to better utilize its full photo capacity.