Chipmakers Facing ‘Very Strong Demand Environment,’ Says Tower CEO

Tower Semiconductor’s 2020 mobile business grew more than 20% year on year, “due to a combination of increased market share, overall market recovery and the beginning of a transition to 5G handsets, said CEO Russell Ellwanger on a Q4 investor call Wednesday. “Growth was broad-based and included ramps of our newest 200-millimeter and 300-millimeter technologies as well as very strong demand for existing offerings.” Tower’s mobile forecasts “are strong for 2021,” said Ellwanger. The chipmaker expects that 5G handsets, which require 30% to 50% more RF content than 4G phones, “will increasingly replace older models over the next few years, creating a sustained opportunity for growth in this market,” he said. Ellwanger doesn’t deny the semiconductor industry is in the midst of “a very strong demand environment” that can make keeping up the supply “sometimes challenging,” he said.