Optical semi: TSEM 2Q/3Q revenue tracking ahead, NPO ramp from 2H27, ’28 model raised +27%/+60% Jul 2026

Based on our primary research, demand for TSEM’s SiPho products remains robust and capacity-constrained. We see potential for a 2Q beat and a 3Q raise, despite likely softness in RF-SOI. TSEM is well positioned to benefit from strong SiPho transceiver demand, with high-speed pluggables remaining the core growth driver over the coming years, while NPO from 2H27 and CPO from ’28+ provide incremental upside.