Description
Tower Semiconductor’s SiPho & SiGe Expansion: 5x Capacity Surge—But Will Demand Keep Pace?
Tower Semiconductor demonstrated revenue growth and margin improvement in the fourth quarter and full year of 2025, driven largely by expansion in its silicon photonics (SiPho) and silicon germanium (SiGe) platforms. For Q4 2025, the company posted revenue of $440 million, marking an 11% sequential increase and a 14% rise year-over-year, while full-year revenue reached $1.566 billion, representing a 9% increase compared to 2024. Net profit improved significantly, with Q4 net income at $80 million (18% net margin), up from 11% in Q1 2025, reflecting technology mix enrichment favoring higher-margin offerings. The company’s growth was primarily fueled by the RF infrastructure segment, which grew 75% year-over-year, aided by heightened demand for 800G and 1.6T silicon photonics pluggable transceivers, particularly through partnerships with leading customers like NVIDIA.
