TowerJazz to Gain Up to 50% of the Planned Fab
Loading Capacity
TowerJazz Received $18 Million First Milestone
Payment; Additional Payment Steps will be Specified in the
Definitive Agreement
Project to be fully supported and funded by
Tacoma, Nanjing Economic and Technology Development Zone, Credito
Capital and other potential third party investors
MIGDAL HAEMEK, Israel and NANJING, China,
August 21, 2017 - TowerJazz, the global specialty foundry
leader, and Tacoma Technology Ltd and Tacoma (Nanjing)
Semiconductor Technology Co., Ltd (collectively known as "Tacoma")
announced today that Tower has received a first payment of $18
million net, rendering phase one of the framework agreement with
Tacoma binding. This agreement maps the establishment of a new
8-inch semiconductor fabrication facility in Nanjing, China.
According to the terms of the framework agreement, TowerJazz will
provide technological expertise together with operational and
integration consultation, for which the Company shall receive
additional payments based on milestones during the next few years,
subject to a definitive agreement specifying all terms and
conditions.
In addition, from the start of production at the
facility, TowerJazz will be entitled to capacity allocation of up
to 50% of the targeted 40,000 wafer per month fab capacity, which
it may decide to use at its discretion. This capacity will provide
TowerJazz with additional manufacturing capability and flexibility
to address its growing global demand.
Tacoma will be responsible to source funds for
all activities, milestones and deliverables of the entire project,
including the construction, commissioning and ramp of this
facility, with the project being fully supported by Nanjing
Economic and Technology Development Zone through its Administration
Committee, Credito Capital as well as through potential funding
from other third party investors and entities.
"This agreement with Tacoma is in line with our
business strategy to focus on growing markets such as China. The
fabless business in China has grown rapidly in the past years. The
new 8-inch fabrication facility in Nanjing will provide us with a
strategic footprint in China and the opportunity to extend our
offerings in advanced specialty process technologies by enabling
customers in China to optimize their product performance and time
to market," said Dr. Itzhak Edrei, TowerJazz President.
Russell Ellwanger, TowerJazz Chief Executive
Officer, commented, "We are exploring multiple opportunities
in China, and determined this agreement with Tacoma to be a
good fit for TowerJazz, providing a roadmap for a
meaningful long-term strategic partnership. China's focus
to develop its domestic semiconductor industry with full
infrastructure presents additional opportunities for TowerJazz, as
a global analog leader, to expand our served markets and geographic
presence. This partnership will enable us to further fulfill
our customers' needs through additional available capacity as well
as to be an active player in the growing Chinese market."
Joseph Lee, Tacoma Chairman, stated: "Deeply
engraved in the corporate culture of both Tacoma and TowerJazz is
the core belief in working 'SMART' with 'PASSION.' Our people are
committed to contributing to our business partners, the global
semiconductor industry and society with the best endeavor and
integrity. Tacoma will fully fund this project together with
Credito Capital and other entities. This venture will become a
dominant player in Asia and will raise the standard in the
semiconductor industry to another level."
A groundbreaking and signing ceremony took place
in Nanjing, China, attended by TowerJazz Chairman Mr. Amir Elstein,
President Dr. Itzhak Edrei, Business Development Vice President Mr.
Erez Imberman, as well as the then Israeli Ambassador to China the
Honorable Mr. Matan Vilnai. Pictured, the signing between Tacoma
Chairman, Mr. Joseph Lee and TowerJazz CEO Mr. Russell Ellwanger,
with among others the above cited attendees.
About TowerJazzTower Semiconductor Ltd. (NASDAQ: TSEM,
TASE: TSEM) and its subsidiaries operate collectively under the
brand name TowerJazz, the global specialty foundry leader.
TowerJazz manufactures next-generation integrated circuits (ICs) in
growing markets such as consumer, industrial, automotive, medical
and aerospace and defense. TowerJazz's advanced technology is
comprised of a broad range of customizable process platforms such
as: SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor,
integrated power management (BCD and 700V), and MEMS. TowerJazz
also provides world-class design enablement for a quick and
accurate design cycle as well as Transfer Optimization and
development Process Services (TOPS) to IDMs and fabless companies
that need to expand capacity. To provide multi-fab sourcing and
extended capacity for its customers, TowerJazz operates two
manufacturing facilities in Israel (150mm and 200mm), two in the
U.S. (200mm) and three facilities in Japan (two 200mm and one
300mm). For more information, please visit www.towerjazz.com.
About Tacoma Tacoma (Nanjing)
Semiconductor Technology Co., LtdTacoma (Nanjing) Semiconductor
Technology Co., Ltd (TTSEMI), a Provincial Key Project of Jiangsu
Province (2017) and Nanjing City Key Project (2017) provides
analog integrated circuit design and foundry technology integration
services with a world class team of engineers.
Tacoma Technology LtdTacoma Technology
Ltd, an investment holding company established in Hong Kong,
entered into a collaboration agreement with Nanjing Development
Zone in 2015 and formed Tacoma (Nanjing) Semiconductor Technology
Co., Ltd.
Tacoma (Nanjing) Semiconductor Technology Co.,
Ltd and Tacoma Technology Ltd are the only two parties partnering
with TowerJazz in the collaboration mentioned in this announcement.
Any other company of which the name includes "Tacoma" or
formerly includes "Tacoma" is not related to this collaboration as
described in this announcement.
About Credito Capital Founded by Mr Wong
Ping Kuen in Beijing, China, Credito Capital has built an
international investment team of diversified and experienced
professionals from Mainland China, Hong Kong, Korea and the United
Kingdom. Credito Capital is specialized in cross border merger
acquisitions and industry investments, including but not limited to
logistics, semiconductor and new energy vehicle industries.
About Nanjing Development Zone Nanjing Development Zone
was established in 1992, and it was approved by the State Council
to be the National Economic and Technological Development Zone in
2002. It has over 216 square kilometers of land reserve for
development, and its comprehensive ranking is among top 10
state-level economic and technological development zones. It is an
important industry base for China advanced manufacturing and modern
service. Up to now, a total of more than 3,000 companies, with a
total investment of CNY 200 billion (of which 500 are
foreign-funded enterprises, with a total investment of $ 12
billion) have been introduced to establish its business in this
development zone. There are 73 world's top 500 enterprises in this
development zone. In the future, Nanjing Development Zone will
continue to focus on the development of a
comprehensive industrial chain of integrated circuit in
the development zone.
Safe Harbor Regarding Forward-Looking
StatementsThis press release includes forward-looking
statements, which are subject to risks and uncertainties. Actual
results may vary from those projected or implied by such
forward-looking statements. The agreement described in this release
contemplates a definitive agreement to be entered into by the
parties, however there is no assurance that such definitive
agreement will be entered into by all parties. The project has not
yet been funded with the resources needed to implement the
contemplated activities of the venture and there is no assurance
that TowerJazz will receive any future proceeds or recognize any
revenues from this project. A complete discussion of risks and
uncertainties that may affect the accuracy of forward-looking
statements included in this press release or which may otherwise
affect TowerJazz's business is included under the heading "Risk
Factors" in Tower's most recent filings on Forms 20-F and 6-K, as
were filed with the Securities and Exchange Commission (the "SEC")
and the Israel Securities Authority. Tower and Jazz do not intend
to update, and expressly disclaim any obligation to update, the
information contained in this release.
###
TowerJazz Company Contact: Lauri Julian |
+1 949-280-5602 | lauri.julian@towerjazz.com TowerJazz
Investor Relations Contact: Noit Levi |
+972-4-604-7066 | noit.levi@towerjazz.com
Attachments:
http://www.globenewswire.com/NewsRoom/AttachmentNg/007c4374-dfa2-481d-871f-70187ac124b0
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