# The company now forecasts quarterly revenue of $455m, compared to the $436.4m expected by analysts.

*semiconductor, genai · news · 2026-05-13 · MarketScreener*

## Key points

- Tower Semiconductor signed new silicon photonics contracts worth $1.3bn revenue by 2027.
- The company has received $290m in prepayments from customers to secure production capacity.
- Tower projects $2.8bn annual revenue and $750m net profit by 2028.
- Quarterly revenue forecast of $455m exceeds analyst expectations of $436.4m.
- Tower is currently involved in a patent dispute with GlobalFoundries over chip manufacturing.

The company now forecasts quarterly revenue of $455m, compared to the $436.4m expected by analysts according to LSEG. Tower Semiconductor also announced several agreements in the field of silicon photonics, a technology that enables ultra-high-speed data transmission via light within AI data centers. These contracts are expected to generate approximately $1.3bn in revenue by 2027. The group has already received $290m in customer prepayments to secure production capacity. CEO Russell Ellwanger saif that Tower remains confident in its target of reaching $2.8bn in annual revenue and $750m in net profit by 2028. In Q1, the group's revenue grew by 15% to $414m, slightly above market expectations, while adjusted EPS reached 65 cents against the 56 cents expected. Tower Semiconductor also remains embroiled in a legal dispute with GlobalFoundries, which has accused it since March of infringing several patents related to chip manufacturing for smartphones and electronic devices.

**Companies:** Tower Semiconductor

[Read the full story on MarketScreener](https://www.marketscreener.com/news/tower-semiconductor-lifted-by-ai-chip-demand-and-photonics-contracts-ce7f5bdcdd80f426)

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