Israeli chipmaker Tower Semiconductor announced on Wednesday its plans to invest an extra $150 million into its efforts to boost its production capacity. According to a company forecast, this year promises to provide record revenue as a result of an unprecedented level of demand.
With certain economies recovering fairly quickly from the ongoing coronavirus pandemic, certain sectors such as auto manufacturing are experiencing a chip shortage. This has resulted in a surge of demand on the part of chip manufacturers.
Given this increase, Tower is committed to ramping up the production of its analog chips at its production facilities in Israel, Japan, and Texas. These 200 to 300-millimeter chips are primarily used in cars, medical sensors, and power management.
“This equipment will begin to have incremental revenue impact during the second half of 2021,” Tower declared. The company is expecting to generate a revenue of 5% above or below $345 million; a year-over-year growth of 15%. Industry analysts are projecting a revenue of $330 million.
For the previous financial year, Tower raked in a revenue of $340.9 million. Given this information, CEO Russell Ellwanger declared, “We are confident that 2021 will be a record revenue year for the company.”
