Tower Semiconductor Ltd.

Good day and thank you for standing by. Welcome to the Towers semiconductor first quarter 2025 earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To restore your question please press star 1 and 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Ms. Noit Levy, Senior Vice President of Investor Relations and Human Resources. Please go ahead.

Thank you and welcome to Towers financial resource conference call for the first quarter of 2025. Before we begin I would like to remind you that some statements made during this call may be subject to uncertainties and risk factors that could cause actual results to be different from those currently expected. These uncertainties and risk factors are fully disclosed in our forms 20f and 6k files with the securities and exchange commission as well as filings with the Israeli security authority. They are also available on our website. Towers assumes no obligation to update any such forward looking statements. Please note that the first quarter of 2025 financial results have been prepared in accordance with U.S. GAAP. The financial tables and data in today's earnings release and in this earnings call also include certain adjusted financial information that may be considered non-GAAP financial measures under regulation G and related reporting requirements as established with the securities and exchange commission. The financial tables include a full explanation of these measures and the reconciliation of these non-GAAP measures to the GAAP financial measures. We have a supporting slide deck that complements the conference call. This presentation is accessible on our company's website and is also integrated into today's webcast for your convenience. Now I'd like to turn the call to our CEO Mr. Russell Elwanger. Russell, please go ahead.

Hello everyone. Thank you for joining our call today. It is a pleasure to have opportunity to update on our activities and progress. We opened 2025 with a quarterly revenue of $358 million with a net profit of $40 million. We guide the second quarter of 2025 to a midpoint of $372 million plus or minus 5% and affirm our target for year over year growth with sequential revenue increases throughout 2025 and with strong acceleration in the second half as our multi-fab capacity investments complete customer qualifications and ramp into production. The overall market experienced uncertainty due to tariffs and related policy shifts. However, Tower offers a clear advantage to our customers through our global footprint and proactive cross-qualification of major process flows across our sites. Our global manufacturing flexibility combined with the strength of our wide technical offerings give us an immediate opportunity to grow wherever demand emerges or constraints occur. We will now present first quarter 2025 revenue breakdown while adding some flavor for the year. Please reference slide number four. In looking at our first quarter revenue breakdown, we see two significant year over year shifts. Firstly, RF infrastructure has grown from 14% of our total revenue in Q125 to 22% and this at a higher corporate revenue level. Secondly, power grew from 10% to 18% of our corporate revenue, a very important shift resulting from a share gain in a new serve market which we will refer to shortly. In our RF infrastructure business, we continue to see growth driven by data center and AI expansions served by our silicon photonics and silicon germanium technologies for optical fiber communication. The first quarter of 2025 continued record revenue levels for these two technologies. As we look toward the second quarter, we see further strong sequential increases with continued growth forecasted in the third and again in the fourth quarter of the year. Silicon photonics continues to display traditional EML solution at 800 gigabit per second and is anticipated to increase further at 1.6 terabit per second for which we are presently in a production rank. The market shift to silicon photonics combined with the expected 800G and 1.6T optical transceiver five-year CAGR of 49% based on light counting reports provides ample opportunity for tower revenue and blended margin growth in the years to come. Please reference slide number five. In addition to being a driver within the strong market dynamics, we continue to invest the next generations of technology to maintain our very high market share in silicon photonics. For example, this past quarter we announced the new technology that enabled Inalight to reduce the number of external lasers used per 800G module by a factor of two and hence substantially reducing the transceiver cost. We also announced with OpenLight the achievement of a 400 gigabit per lane modulator performance enabling next generations of 3.2T products. To our knowledge, this is the first demonstration of a 400 gigabit per second modulator integrated on an 8-inch silicon wafer. Please reference slide number six. Along with silicon photonics, silicon germanium is growing strongly with continued adoption for TIAs and drivers and optical modules which are benefiting from the same strong market dynamics. Longer term, we see adoption of silicon germanium and satellite terrestrial receivers as well as in low noise amplifiers for the most advanced handsets providing additional growth factors for this high margin segment of our business. In 2024, the handset market demonstrated about 7% growth with Towers RFSOI year over year growth being about 30%. This year, the handset market is currently forecast as flat to minimal growth creating a situation where our RFSOI customers are now burning off some inventories. However, our handset markets are overall growth being more than compensated by a new serve market for Tower namely envelope cracker served by our highly differentiated custom developed power management 300 millimeter BCD platform. We expect this to continue to grow and provide a strong revenue stream for multiple years.

Finally,

in power management, we are seeing a strong rebound of both our high voltage 200 millimeter platform as well as continued strong growth in our 300 millimeter BCD platforms. Our higher voltage 200 millimeter power business serving automotive industrial and consumer applications are in the midst of a strong ramp. In 300 millimeter BCD, we are primarily benefiting from the strong ramp of new business serving the handset market namely envelope cracker as previously mentioned. An envelope cracker is used in advanced handsets to improve battery life by interacting closely with the baseband to dynamically adjust the of the power amplifier minimizing wasted energy. Our current ramp is in support of a major new handset with a newly introduced custom baseband that is coupled with our direct customers envelope cracker. The 300 millimeter business is expected to grow strongly as we continue to qualify additional products and ramp a large capacity we have available in the Albuquerque facility. We are seeing a market rebound in our machine vision sensor business both in 200 millimeter and 300 millimeter. Customers have consumed their inventories and are placing orders not just for existing SKUs but also for new sockets demonstrating refreshed vibrance in this market. This includes not only the traditional machine vision market using our global shutter pixel technology but also 3D depth centers direct time of flight based on our SPAD pixel technology for robotics and autofocus applications. The impact of this rebound is expected to be seen in the revenue of the second half of this year. Utilization in the first quarter Fab 2 we continue to build the additional side G capacity operated at approximately 55 percent utilization. Fab 3 is 80 percent utilization. Fab 5 at 65 percent growing with the increased high voltage power management demand and Fab 7 300 millimeter was fully utilized with the highest process layers to date with additional activities allowing us to be well above our 85 percent utilization model. Fab 9 was at 70 percent utilization. To note as previously stated Fab 2 and Fab 9 are in the midst of repurposing towards silicon germanium and silicon photonics with a valuable capacity awaiting full customer qualification. In summary we are pleased with progress across all areas. We reaffirm quarter over quarter revenue growth for the year. Silicon photonics and side G demand remain strong in fact very strong with tier one customer alignment on next generation code developments in 200 and 300 millimeter. Our 200 millimeter high voltage power is experiencing high demand with continued strong interest in 300 millimeter 65 nanometer and finer line BCD programs. The industrial image market is rebounding on top of a stable medical and camera imaging business and we remain confident in the realization of high volume display activities. With that I'd like to turn the call to our CFO Mr. Oren Shirazi. Oren please.

Thank you Russell. Hello everyone. Earlier today we released our financial results for the first quarter of 2025. For the first quarter of 2025 we reported revenue of 358 million dollars representing a 31 million dollar or nine percent -over-year revenue increase compared to the quarter in 2024. Gross profit and operating profit for the first quarter of 2025 were 73 million dollar and 33 million dollar respectively similar to the same quarter in 2024. This gross profit and operating profit benefited from the -over-year revenue increase. This benefit was offset by the Agrafeb fixed cost which has previously communicated commenced operations during the fourth quarter of 2024. Net profit for the first quarter of 2025 was 40 million dollar reflecting 36 cents basic earnings per share and 35 cents diluted earnings per share. Net profit for the first quarter of 2024 was 45 million dollar or 40 cents basic and diluted earnings per share and included a non-recurring income tax benefit. Moving to our balance sheet and future capex and cash plans. Our balance sheet remains very strong evidenced by the following indicators and financial ratios. As of the end of March 2025 our assets totaled 3.1 billion dollars primarily comprised of 1.3 billion dollars in fixed assets predominantly comprised of Feb machinery and 1.7 billion dollars current assets. Current assets ratio is very strong at about 7x while shareholders equity reached a record of 2.7 billion dollars at the end of March 2025. An additional indication of our financial strength has been awarded to us last week by Standard & Poor's Israel recent annual rating review which reaffirmed our rating as ILAA stable endorsing a stable outlook for the company. Our strong financial position allows us to invest in strategic opportunities that support our corporate vision as follows. One we've committed to pay up to 300 million dollars to acquire equipment and capex in the 12-inch New Mexico Feb 15% of which has been paid and the remaining 85% is forecasted to be paid as we ramp up qualifications by end of 2026. As part of the micro partnership 500 million dollars in cash are allocated for this Italy 12-inch Feb equipment. We've already invested 80% of such amount and the balance is expected by the end of 2025. And three for our high margin Cypher and Sygee business we announced we will invest 350 million dollars to expand our capacity in our 8-inch Febs in Israel and Texas and in our 12-inch in Japan 25% of such amount has been paid to date the remaining 75% is expected to be paid by end of 2026. All of these investments including the Cypher and Sygee capex are fully reflected in our previously presented strategic and financial model. Under this model we target 2.7 billion dollars in annual revenue at full loading of our existing Febs including Agra and New Mexico. 560 million dollars in annual operating profits and 500 million dollars in annual net profit. That concludes my prepared remarks. Now I'd like to turn the call back to the operator so we can take your questions.

Thank you. To ask a question you will need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question please press star 1 and 1 again. Please stand by while we compile the Q&A roster. Thank you. We will now go to the first question. And your first question comes off the line of Cody Acree from the Benchmark Company. Please go ahead.

Oh yeah thanks guys for taking my questions and congrats on the progress. Russell congrats on the new on-load tracking business. If we can just start there can you just maybe help us size that business revenue wise today and then your expectations for the year and maybe as you look into the next few quarters?

Um I'm not sure I really should. Being that it's very specific to a certain customer and I think not difficult to find out who that customer is. It has reached very high volumes and will continue at even higher volumes and we were talking thousands of wafers per month but I don't think it would be proper for me to give more color than that especially with your own reporting. I think you would specifically know exactly who we're talking about.

And this is going to be accounted for in your RF mobile business is that correct?

No the envelope tracker is in the power management.

In power management okay. Awesome. About

the increase from the 12 percent to the 18 percent?

In the 300 millimeter right okay awesome. Can you maybe help us with the size of your SIFO business this quarter and your expectations for the rest of the year?

Um certainly I think this is just in line with what we talked about when we entered the year and there's no difference right now in what we're seeing in the growth. We finished the previous year with SIFO at about 105 million dollars and we said that we would see a doubling of that within 2025 and that's everything pretty much on track for that to occur.

Okay great. And then lastly can you maybe just actually two more questions. Can you just talk about the tone of business that you may be getting from customers in your conversations both officially and unofficially I guess as you're just talking to them and getting their read on the impact of the current tariff landscape?

Um there's certainly discussion about tariffs and a potential impact. We've not seen any yet and our customers aren't really seeing an impact. There's potentially some fear not as far as our manufacturing which is stated we do have the ability through cross qualifications to manufacture in many different global locations depending on customer needs or desires. But there's you know some potential fear that if you look at the very end market for example some of the power management going into power tools that are being produced in China that that potentially could have a softening in the end market of the China products being sold into the U.S. None of that has been realized yet but there's you know some concern there. However we we have not seen any pullback in orders nor a discussion of pullback in orders due to any concerns on tariffs and some of that again is because of our ability to support our customers in manufacturing and shipping from various global locations.

Great thanks for the help there and then just lastly any any thoughts or comments around the the Indian project that was in the media the last couple weeks about the possible tabling of that project?

A very good question Cody. Let me just think for a second so that I answer it properly and ethically correct. So I did read the article. It came as a surprise because we stopped the project and at our request we withdrew from the project some five six months ago. I will say without breaking any type of confidentiality agreements that we had that the article itself was 100% baseless. Really no truth in anything that it said. It was tower that withdrew from it. The reasons we withdrew are very good reasons but again out of confidentiality it would not be proper for me to go into those reasons. However we never press released anything about the India project. It was released by others not by us during the time that we were engaged but why we did not press release anything is we never had any formal agreement to go forward. We were working on an opportunity as one should always look at and develop every opportunity that is good for your customers, good for your shareholders, good for your business and it could have been a very good thing. But ultimately for reasons we thought were very good we withdrew from the project. Unlike anything that was in the article it was tower that withdrew.

Thank you all for the help and congrats on all the progress.

Thank you. Very good questions Cody and thank you always for your interest and good questions.

Thank you. Thank you. As a reminder if you would like to ask a question please press star one and on your telephone keypad. We will now go to our next question. One moment please and your next question comes from Richard from Craig Hallam. Please go ahead.

Well hi Russell and thanks for taking my questions. Maybe I'll start with the first one on silicon photonics. I prepared to ask you about the competitive dynamics here and I would love to get your sense of given the few other founders and started talking a little bit about silicon photonics for transceivers whether you're seeing anything specifically. And then maybe as a follow on in this general topic silicon photonics how do you see the 1.6 generation shaping up from a revenue point of view versus the 800 gig generation the charity obviously doing very well.

I didn't honestly follow the first part of your question. Maybe you could restate it but I'll answer the second part. The 1.6T we are in a ramp right now with additional customers saying that they will be ramping strongly in the second half. So we are it's very real. We're supplying it in a good fashion and these are 8 by 200 channels. So I'm moving along very well and I wanted to if you could really just restate the first part of the question because I didn't pick up what the question was.

Sure it's just based on competitive dynamics and silicon photonics. We've seen a couple other foundries talk about either in earnings calls or in other events about you know getting into the transceiver part of the market here. So just wanted to get your sense of whether you're seeing any of that.

We would estimate our market share somewhere about 80 percent. Now anytime that you have a very strong market share you have to work very hard to protect it and the best way to do that is shipping wafers that perform well on time and having customer aligned roadmaps that their next generation needs are ready and available before they need them. So that's where we're engaged right now. It's a very big growing market as I stated. If you look at the analyst report it's looked to have a 49 percent CAGR.

And having customer aligned roadmaps that

their

next generation needs are ready and available before they...

It's forecast to have a 49 percent... Are you there? Hello?

I'm here yes.

Okay a 49 percent CAGR so it's a very big growth market. Our point will be to maintain very strong share as that market is growing. But it is a very big market. It's you know also a a very high value product. High value products drive very high margins. So hopefully that answered your question but at present we are serving four of the top five producers. You know as far as optical integrators and I think in a sole position with four of the top five.

Okay excellent. Appreciate that feedback. My next question Russell is regarding any utilization. Sounds like you're cross-fertilizing processes across multiple fabs which you described already here today which makes total sense here. But want to get a sense of when we start to see this this complete and start to see greater capacity available here. And I guess my question is specifically oriented towards silicon germanium, silicon photonics. I want to know whether you know is that utilization pretty much 100 percent and when does that spigot open up here? You know to see you know it sounds like you have great demand here. I'd love to get a sense of when we start to see acceleration.

Yes to restate what I said during the prepared remarks for the IG and SIFO as a combined infrastructure business we see continued growth you know record revenue presently and we see that growing in Q2, growing in additionally in Q3 and growing additionally in Q4. So if you were talking about capacity opening up you know that's the only way that that could happen when there's big demand obviously we're running as many as we can presently. But the cross qualifications as well as even within Newport Beach additional capacity capability being added so that's happening real time and you'll see it as we anticipate that you'll see it in Q2 and then incrementally higher Q3 and again incrementally higher in Q4.

Okay last question I'll jump on the line here. Just want to ask kind of big picture longer term thinking out you know a couple years or if you want to pick a different time frame here and looking at some of the big picture or the biggest drivers of your top line here. Obviously RF infrastructure with the two segments we talked about today is going to be one I would imagine fit in their power RFSOI with the new capacity and then your last earnings call you specifically mentioned in your closing remarks about OLED and on silicon backplanes here. What if you kind of rank order which ones you think are going to be the biggest dollar contributors over two years time frame or whatever you'd like to pick Russell?

On incremental dollar growth and especially the margin impact of it the biggest contributor will be RF infrastructure. Power on absolute dollars should continue to be a big growth driver. RF mobile as stated has pulled back a bit within the first quarter as compared to where we were at during 2024 but we expect that as well to snap back and have very strong growth in 26 and 27. So I think that those will be the biggest. The display we're confident of display realizing big revenue growth. There's activities happening customer forecasts that are happening but it has not been accomplished yet. So I don't want to overstate that. The biggest confidence in the future of what's happening presently the activities are there the revenue not yet. So upon starting to get into a few thousand wafer per month of backplane shipment that's when I'll be more confident on the growth driver of the display. But to get to the few thousand way for a month I'm confident in that presently on display itself. And again what we do with the OLED is the backplane the silicon backplane.

Okay appreciate that perspective I'll jump out of line. Thanks Russell.

Thank you Richard very good questions.

Thanks. Thank you. Your next question comes from line of Matt Bryson from Wedbush. Please go ahead.

Thanks for taking my questions. Just with the RF mobile business I think it's at the lowest point or close to the lowest point that it tends to hit. Can you tell us whether or not this might be a bottom, how far customers are in terms of reducing their inventories? And I guess is it all inventory reduction or I think there's been a bit of effort in China to ramp up domestic production on the RF side. Is that affecting the business at all?

So by forecast we see the mobile business growing throughout the year the RF mobile so RF SOI specifically in the front end module. So it should be growing throughout the year against the Q1. So I would at least from forecast I would say that yes this Q1 was the lowest point. Now on the base business itself you are correct there has been a drive in China and possibly something that came as a little bit of a surprise and maybe a negative impact of trying to get the Chinese regulatory approval was needing to show them our customers and different numbers from our customers and potentially that drove some further drive for some of our very big Chinese customer to give more market share into China. So that is part of what we're seeing as well. We have one customer to where they are sourcing more of their volume percentage inside of the country itself.

Awesome I really appreciate the call that was all I have. Thank you very much.

Thank you. Your next question comes from the line of Lisa Thompson from Zacks Investment please go ahead. Good morning.

I'd just like to ask a little bit more about your sales and how it relates to tariffs. I know at the year end you said 42 percent of revenues go to the U.S. but I believe that just means that's where you send the bill. Do you actually have what percent of the product or so do you have coming from outside the U.S. to the U.S.?

Like we said in the financials you're right 42 percent of our revenues are for U.S. customers. Usually the shipping of the goods is not done to U.S. it's done to where the customer asks us to send it for continued work which usually is I mean it's not usually there is a lot of regions in the world according to the customer request. It can be Philippines, Thailand in order to package them and test them and put them into a final end product according to the customer request. It doesn't matter that the corporate is in the U.S. for this case.

So the 42 percent is just who you bill right? It's not where it goes.

It's the headquarter of the parent company that we bill. That's how we do it. It's not the place we ship to the product. We ship what we're doing to the next packaging houses and to the next station in the chain in the supply chain.

Correct. So that would mean possibly that very little of that revenue actually goes physically to the U.S. and would be captured by tariffs right?

That's how we do it. Yes exactly. A very small part of that physically enters us to the U.S.

Yes. All right that's good to know and just one small question. Do you expect operating expenses to stay above the 40 million dollar level from the rest of the year?

We expect it to remain about flat at these current levels of 40 million a quarter right? Yes.

Okay great. Thank you so much. That's all my questions.

Thank you. Our next question is a follow-up from Cody from the benchmark company. Please go ahead.

Hey guys. Thanks for letting me back in line here. Just a couple quick questions. The volume that you're seeing from Agrape, has that started in earnest?

Yes.

In Q4 it actually started in earnest.

Any thoughts on that ramp Russell throughout the year?

Q2 will be a reasonable number. Q3, Q4 we expect will be higher by forecast. That was something that had mentioned previously that we see the Q1 revenue as the low. The bulk of our RFSLY at this point is 300 millimeter not 200 millimeter and by design we've tried to move all of the 300 millimeter into the Agraate factory for multiple reasons. Not the least of which is allowing then more capacity in Fab 7 for the PsyG and Silicon photonics growth for new 300 millimeter platforms.

Okay thanks. That's very helpful. And then you mentioned the envelope tracking power management business and you mentioned New Mexico in the same breath. You're not ramping that in New Mexico yet. Is that right or is that the plan? Are you ramping wafers in New Mexico already?

That specific project is being worked in New Mexico. It is not yet ramped in New Mexico. Right now that is coming out of the wozu factory in Japan.

Okay great thank you. And then lastly could you just, I'm sorry I'm going to slow on this but can you cover your conversation or your explanation about what's happened in China in the RF mobile business? You mentioned a customer, the qualification process and some regulatory approval movement with a customer. Can you just re-discuss that?

During the diligence and working to get Chinese approval for the Intel acquisition, we were very careful about not opening up anything about customers that were not Chinese based. But we had very little choice but to be open about revenues and activities of Chinese customers with the Chinese government. We think potentially as a result of that, that at least one customer got a lot of pressure to start sourcing in China. And that happened and some of their market share is now going internally into China. Presently it's not the most advanced platforms. The capability doesn't sit there to do that but volumes of older platforms are now being manufactured in China and not with us.

Okay but that does not change your expectations of the RF mobile business is still troughing in Q1 and should improve through the year?

Correct.

Okay, all

right.

Thank you guys. Thank you.

Thank you. Our next question is also a follow-up from Richard Chanin from Craig Hallam. Please go ahead.

I'm going to follow on Cody's last question here on mobile. And specifically, I think it was response to my question here about improvements kind of longer-term. I think you talked about snapback in 26 and 27 in RFS, OI and mobile. I guess I want to get some sense of the dynamics you're expecting a much better market or what I would guess is some share gains here but maybe can kind of clarify how and where this you expect this to occur.

We have brought on multiple newer customers, some relatively new entries into the market that have grown remarkably fast. One specifically, I don't believe that we've press released with, we intend to, but it's been a customer that was very strong in antennas that then went into making their own antenna switches. And they've been very successful. They've grown very strong. We have multiple other customers that as well are gaining share very quickly. So that's a lot of what we're talking about within the growth of the remaining quarters of 2025. These customers, because of their big share gains during a time that the market was being built at a reasonable rate, the 7% improvement, and they got share gains in it, they certainly bought as many products as they could. As you're initially ramping and gaining share, the one thing that you cannot do is under supply to customer's demand. So the handset integrators that were buying from them, they themselves built relatively big inventory so they wouldn't let them down. When the market then started to pull back with the forecasted no to very low single digit growth in 2025, they were stuck with inventory that's burning off now. So for the existing SKUs that we had shipped last year, they have inventory that's being burned off. But there's continual new designs for more advanced models. So that's what we're really counting on for the growth in this year. As far as getting into 2026 and beyond, there's more established very large customers that we have re-engaged with or newly engaged with that their ramps are planned to start in the fourth quarter of 2025 and go throughout 2026 or to begin in the first quarter of 2026. So if you look at 2026, we see it as a very big growth year for our RS mobile business, mainly front-end module serving handsets. Hopefully that gives the color you're asking for.

That was very helpful. Thanks for that, Russell. My next question is related to the New Mexico Fab with Intel here. I guess maybe I had a little bit of confusion that Cody asked on as well here. But maybe I'll ask in a slightly different way here. When do we expect to qualify equipment here, start to see depreciation and then also go to production? In this last part of the question, Russell, I asked because last call you talked about a large PO you got in power management, I think very early this year that we're not talking about ramping until next year. It seems like very early to award a PO for. So I just want to make sure I understand that well.

As far as the first part of your question, we would start seeing production shipments within this year, which is what we've had stated in the third, fourth quarter of this year. Upon hitting a certain level of production shipments is when you begin depreciation of tools. So that's when we would start seeing depreciation. You'd have to refresh me though on the second part of the question. I talked about a big PO for power management.

Yeah, in the last earnings call. In fact, I can pull that up here and find it real quickly. I think it was in your prepared remarks, actually, if you give me a second, I can locate it here. Yeah. So last quarter, you said we delivered successful prototypes to lead customers and based on that, just received our first production PO related to your 65 nanometer DCD.

Yeah, that was in fab 11x. I didn't say that it was big volume, but we did receive our first production POs. Before we start recognizing revenue, we have certain milestones on the volume that we ship and those volumes we would leave will hit Q3, Q4.

Okay. That's helpful to give some perspective there. And then my last quick question, Russell, is related to silicon photonics. I think you've mentioned additional platforms that do laser attach with the silicon photons you're delivering today. I'm wondering when we might see that into production and then also, general timeframe, when do we expect to

see that? It's a very good question, the latter part. The bigger question is when will the CPO market actually be realized? And it's thought to be probably at least four years out. So I am not sure of the exact timing of when CPO will be there. What we're doing with CPO are very good active programs to ensure that our customers that are, you know, really, as I stated, the big players on the optical integrator side, that they know they can stay with us for multiple generations and that we're well prepared and they're well prepared at the time that it would be if it does get adopted, that we'll be their supplier. So and we have many forms of how we're pursuing that. If that answers the CPO question. And what was the other part of the question?

I'm sorry. Laser attach, you know.

Yeah, so that's exactly, that's where we do the integrated laser. That's with the Open Light platform. When will that start seeing volume shipment? By forecast, we have multiple customers that are saying it's the 2026. We'll see if that occurs. But that is what's being stated on it.

Okay, that's helpful perspective. That's all for me. I will jump in online. Thanks, Russell.

Thank you.

Thank you. That does conclude our Q&A session. I would now like to turn the call to Mr. Russell Awanga. Please go ahead.

Thank you. This past month, Dr. Priesler, the VP of RF Technologies, Dr. Rackinelli, Towers President and I attended the Optical Fiber Conference, OFC in San Francisco. We have developed quite a strong reputation in the optical fiber field. And candidly, it was almost embarrassing. We were greeted as rock stars. During the conference, we met with over 60 customers with discussions and real-time activities in multiple areas. For example, programs for further platform efficiencies, multiple form factors for next generation 400G modulators and co-package optics. As executive management, we continuously meet with our lead customers and new customers, both groupings either already creating or with the potential to create a large industry impact. In my most recent multi-week customer visits, I was thrilled with the extreme capability, character and passion of our existing customers as well as newer customers, spanning not just data center, but also our mobile front-end module, power management and imaging offerings. It really is the most exciting time for Tower. There's an interesting quote from former US President Bill Clinton. He stated, old age is when our memories outweigh our dreams. Myself, not being a spring chicken, I pondered these words. I specifically pondered what defines vibrant inspired youth. My thought is that it's not just a high weighting of dreams, and maybe better wording than dreams is high and noble aspirations, but as or even more importantly that these aspirations are tied to consequent actions. At Tower, we have many high and challenging aspirations, but most importantly are the real-time consequential actions we are doing. We are a team of extremely capable people with boundless passion and an environment that promotes and inspires. Both the capability and passion is unstoppable, especially when this environment is based upon customers with equal capability and passion that are dedicated to partner towards mutual success. We thank you for your interest in the company. We look forward to as we continue our progress towards achieving our multi-year aspirations. In the short term, we'll be attending the following conferences and look forward to seeing you face to face as possible for your schedules. On May 18th, we'll participate in the Opertimer annual Israeli conference in Tel Aviv. On May 28th, we'll participate at the Craig Allen 22nd annual institutional investor conference in Minnesota. On May 29th, we will participate at the T. Day Cowan 53rd annual technology media and telecom conference in New York. Again, thank you for your interest. Thank you for your support and best wishes to you.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.