MIGDAL HAEMEK, Israel – Tower Semiconductor (NASDAQ/TASE: NASDAQ:TSEM) has announced the production of Wi-Fi 7 RF front-end modules (FEMs) using its advanced 300mm RFSOI technology. In collaboration with Broadcom Inc. (NASDAQ: NASDAQ:AVGO), the company has developed fully integrated Wi-Fi FEM devices on a single RFSOI die, enhancing mobile connectivity performance and efficiency for next-generation applications.
The partnership with Broadcom leverages Tower Semiconductor's RFSOI technology to create compact, high-performance FEMs designed for Wi-Fi 7 mobile applications. These devices are engineered to meet the demanding size and power efficiency requirements of mobile devices.
"The unique advantages of Tower’s RFSOI technology have enabled Broadcom to design and bring to market a set of compact, high-performance FEMs for Wi-Fi 7 mobile applications," said Vijay Nagarajan, Broadcom's Vice President of Marketing, Wireless Communications, and Connectivity.
Dr. Marco Racanelli, President of Tower Semiconductor, highlighted the synergy between Broadcom's RF FEM product design expertise and Tower's technological strengths, which has led to unprecedented performance and integration. This collaboration underscores Tower's commitment to providing superior technology and manufacturing solutions that support customer success.
The integration of PA devices into Tower's RFSOI technology platform eliminates signal loss between separate dies and improves PA efficiency with a high-resistivity SOI substrate, which supports higher-quality factor passive elements. Tower's technology platform is widely adopted due to its best-in-class silicon-based switch and LNA performance.
Tower Semiconductor, a leading foundry of high-value analog semiconductor solutions, serves diverse markets, including consumer, industrial, automotive, mobile, infrastructure, medical, aerospace, and defense. The company offers a wide range of customizable process platforms and is committed to creating a positive and sustainable impact through long-term partnerships and advanced technology.
This announcement is based on a press release statement and reflects the production milestone achieved by Tower Semiconductor on September 10, 2024.
In other recent news, Broadcom has seen significant recent developments. The company reported a 47% year-over-year increase in its financial performance for the third quarter of fiscal year 2024, with consolidated net revenue reaching $13.1 billion. Operating profit also saw a substantial boost, climbing 44% year-over-year, attributed to robust AI revenue and increased bookings from VMware (NYSE:VMW).
Broadcom has also raised its forecast for AI-related revenue for fiscal year 2024 to $12 billion, up from the previously projected $11 billion, due to robust demand from major cloud service providers. The company's non-AI semiconductor revenue is showing signs of recovery with sequential growth.
Furthermore, the integration of VMware into Broadcom's operations seems to be proceeding smoothly, with VMware contributing $3.8 billion in revenue during the third fiscal quarter of 2024.
Baird has maintained its Outperform rating on Broadcom's shares, while KeyBanc Capital Markets reaffirmed its Overweight rating. However, analysts from CFRA Research and Morgan Stanley (NYSE:MS) noted that while the company's AI chip business remains promising, its growth could be inconsistent as it relies on a small number of clients making significant capital investments.
Despite these recent developments, Broadcom's shares experienced a significant drop due to a lukewarm revenue forecast.
InvestingPro Insights
In light of Tower Semiconductor's collaboration with Broadcom, it is noteworthy to consider Broadcom's current financial health and market position. With a robust market capitalization of $655.5 billion, Broadcom stands as a significant player in the semiconductor industry. The company has demonstrated a substantial revenue growth of 32.04% over the last twelve months as of Q1 2023, underpinning its capacity for innovation and market expansion, much like its recent venture with Tower Semiconductor in Wi-Fi 7 technology.
InvestingPro Tips highlight Broadcom's track record of raising its dividend for 14 consecutive years, pointing to a stable and shareholder-friendly financial policy. Additionally, Broadcom's commitment to dividend payments is further emphasized by maintaining these payments for 15 consecutive years. This financial discipline and performance may instill confidence in investors considering the company's role in developing next-generation Wi-Fi technology alongside Tower Semiconductor.
For those seeking more in-depth analysis, InvestingPro offers additional tips on Broadcom, available at https://www.investing.com/pro/AVGO. With 19 analysts having revised their earnings upwards for the upcoming period, the potential for Broadcom's continued growth is reinforced, providing a broader context for the significance of the partnership with Tower Semiconductor.
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