The company said that all the manufacturing capacity this capex will generate in 2023 and beyond, is spoken for.
On a conference call to discuss Tower's 3Q21 financial results, analysts were told that Tower expects to have about one third of the total manufacturing capacity of the Agrate fab with a ramp up of production beginning in 2023.
ST began construction of the R3 wafer fab at its Agrate facility in 2019 (see ST starts construction of 300mm wafer fab). It was announced in June 2021 that it would share the facility with Tower (see ST, Tower agree to share 300mm analog, power fab) in the interest of ramping use of the facility more quickly.
Oren Shirazi, CFO for Tower, said that with regard to Agrate, the foundry plans to spend $160 million on capex in 2022 and $240 million in 2023. "The building is ready and tools are starting to roll in. We will spend $400 million toward the capacity we want to have there," said Sharazi on the call.
However, it is capital expenditure elsewhere going on in 2021 and into 2022 that will provide most of a greater than 30 percent organic increase in revenue that Tower expects to see in 4Q23 compared with 4Q21. This will be on top of 26 percent organic growth of revenue that Tower expects to achieve in 4Q21 compared with 4Q20, the company said.
Russell Ellwanger, CEO of Tower, said that organic growth in 4Q23 would only be partially influenced by production from the Italian fab that would ramp production from a start in 2023 up to 2026.
He added that "several different platforms of RFSOI and stitch-field display" would be the first manufacturing processes to run for Tower at Agrate.
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