Tower Semiconductor Q1 revenue falls on weak demand

Tower Semiconductor has reported a 7% decline in first-quarter revenue reflecting muted demand from the industrial and automotive sectors.

Over the past few quarters, semiconductor firms have dealt with a supply glut as they focus on clearing excessive inventory, mainly in the automotive industry, hurting companies like Tower, making analog, mixed-signal chips, and sensor technologies.

French-Italian firm STMicroelectronics is one of the latest chipmakers to lower its full-year guidance due to declining orders.

Tower Semiconductor reported revenue of $327 million for the three months ended March 31, down 7% year on year.

It forecast second-quarter revenue at $350 million, with an upward or downward range of 5%.

It posted adjusted profit of 46 cents per share for the first quarter to top the 39 cents per share expected by four analysts polled by LSEG. Reuters