TowerJazz Announces Signing Three-Year Agreement Extension with Panasonic Semiconductor Solutions
March 26 2019 - 5:00AM
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TPSCo
NEWS ANNOUNCEMENT
FOR IMMEDIATE
RELEASE
TowerJazz Announces Signing Three-Year
Agreement Extension with Panasonic Semiconductor
Solutions
Panasonic will continue to utilize TPSCo
three manufacturing facilities in Japan; TowerJazz
to further ramp its leading technology solutions and foundry
business
MIGDAL HAEMEK, Israel and TPSCo,
Uozu, Japan, March 26, 2019
– TowerJazz, the global specialty foundry leader, and
TowerJazz Panasonic Semiconductor Company (TPSCo), today announced
they have signed a three-year agreement, extending its previous
business partnership with Panasonic Semiconductor Solutions (PSCS)
through 2022. Under the agreement, PSCS will continue to utilize
TPSCo three manufacturing facilities in Japan for its semiconductor
business. Wafer loading level from PSCS to TPSCo fabs is
expected to remain similar, with a new pricing structure, resulting
in revenue reductions of approximately 20 million USD per quarter,
with revenue and margins targeted to be compensated through
presently implemented efficiencies and cost reduction activities,
as well as third party revenue growth, including the present strong
300mm utilization ramp.
Russell Ellwanger, TowerJazz CEO and TPSCo
Chairman commented, “The TPSCo partnership has brought together two
leaders - Panasonic, an acknowledged analog components and systems
leader, and TowerJazz, a recognized analog foundry leader- having
created a company that serves and continues to grow the analog
foundry space as no other existing single foundry can. During the
past five years, we have continued to grow in respect for the
technical capability and appreciation for the business acumen and
can-do attitude of our Panasonic partner. Our TPSCo employee base
has strong technical expertise and pristine operational execution,
with over 180 foundry customers have been introduced into TPSCo,
which is presently realizing a strong ramp in 300mm state of the
art RF, power management and CMOS imaging flows. This has been and
continues to be a winning equation for all involved - TowerJazz,
PSCS, TPSCo and our very important customers.”
Through TPSCo, TowerJazz offers its customers
advanced 300mm analog technology manufacturing platforms such as
state-of-the-art 65nm CMOS image sensor solutions, RF SOI 65nm, and
65nm Bipolar-CMOS-DMOS (BCD) power management platform.
TowerJazz to maintain its 51% holding of TPSCo
shares, with PSCS as a 49% shareholder.
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 TPSCo TPSCo is a company,
51% owned by Tower Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM)
and 49% owned by Panasonic Semiconductor Solutions. TPSCo has
three manufacturing facilities in Hokuriku, Japan which
have been producing large scale integrated circuits for over 35
years. More than 750 million ICs for automotive products (Grade 0,
1 & 2) have been produced by TPSCo fabs since inception. Areas
of process technology focus include high dynamic range image
sensors (CIS and CCD), integrated power devices (BCD, SOI, and
LDMOS) and high-frequency silicon RFCMOS. With over 150 qualified
silicon process flows on 200mm and 300mm wafers from super micron
to 45nm as well as internal back end processing, assembly and test
services, TPSCo provides both IDMs and fabless companies with
unparalleled semiconductor manufacturing quality and technology,
including in-house turnkey services.
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. 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, F-3, F-4 and
6-K, as were filed with the Securities and Exchange Commission (the
“SEC”) and the Israel Securities Authority and Jazz’s most recent
filings on Forms 10-K and 10-Q, as were filed with the SEC,
respectively. Tower and Jazz do not intend to update, and expressly
disclaim any obligation to update, the information contained in
this release.
###
Company / Investor Relations Contact: Noit Levy
| +972-4-604-7066 | noit.levi@towerjazz.com
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