tower semiconductor 88.
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Computer chip maker Tower Semiconductor Ltd. said Wednesday it signed an agreement with SanDisk Corporation to help finance a capacity expansion on Tower's 0.13 wafer production and for the purchase of the product by SanDisk for two years.
Market sources estimate the deal is worth $50 million per year in revenue for Tower in 2007 and 2008 when SanDisk will purchase the wafers, and if it exercises its right of first refusal on the use of the extra capacity in 2009. Tower did not say how much of the expansion investment SanDisk would cover or how much it would cost.