stack of dollars 248 88.
(photo credit: Channel 10 [file])
Tower Semiconductor Ltd., a specialty foundry that makes semiconductors, has
completed the acquisition of Micron Technology’s microchip fabrication facility
in Nishiwaki City, Japan, the Israeli company said Sunday.
markets products under the TowerJazz brand name, said the acquisition nearly
doubles its current manufacturing capacity, raising production potential to
60,000 wafers per month.
The expanded capacity would serve the growing
needs of Tower’s expanding blue-chip customer base and, combined with the added
business potential in Japan, is expected to help position the company in
reaching its target of $1 billion annual revenue by 2014, Tower said.
purchase of Micron, including assumption of liabilities, cost about $140
million, of which $40m. was paid in cash, and some 19.7 million Tower ordinary
shares, it said. Under a “takeor- pay” supply agreement between the companies,
Tower will also manufacture products for Micron in the Japan facility for at
least the next three years, with processing technology licensed from
With completion of the acquisition, Tower said it now has
operational facilities worldwide, with two fabs in Israel, one fab in the United
States, additional capacity available in China through manufacturing
partnerships, and the newly acquired fab in Japan.
enhances the company’s geographic reach and distribution capabilities, which
TowerJazz believes will create a significant opportunity for revenue enhancement
and increased efficiencies in manufacturing,” Tower said in a press
“We are excited about the potential of this acquisition and
believe this is an opportunity for us to bring our analog specialty leadership
to the next level,” Tower CEO Russell Ellwanger said in the statement. “This
acquisition is an excellent strategic fit for TowerJazz; it sends a clear
message to our customers that we are positioned to meet their growing
Tower chairman Amir Elstein said: “The acquisition of a
high-volume manufacturing facility in Japan was not an opportunistic event, but
rather a boardapproved strategy that the management aggressively pursued and
I have personally met with the management of the Nishiwaki
facility and am most positive that the employee talent and large factory
capacity will be seamlessly incorporated into TowerJazz’s global specialty
foundry growth and performance leadership.”
Tower said the facility could
support geometries down to 95 nanometers in size and can also be used to
manufacture other products using TowerJazz process technologies.
said it plans to quickly qualify its core powermanagement platforms to serve the
substantial growth demand from its Korean customers and then build highend
radio-frequency (RF) capabilities.
Tower’s share price was down 1.74
percent on Nasdaq of Friday to $1.13, giving it a market cap of $305.72m.