TowerJazz Signs Definitive Agreement With Asian Entity to Provide Know-How

Published November 23rd, 2009 - 10:38 GMT

TowerJazz, the global specialty foundry leader, today announced the
signing of a definitive agreement with an Asian entity, in furtherance of
the company's corporate strategy to penetrate the Asian markets and to
leverage its manufacturing know-how and assets to expand its business in
this region. Under the agreement, TowerJazz will arrange for the required
manufacturing know-how and certain equipment required for successful
capacity ramp-up.     

 

    The deal will realize TowerJazz revenue of approximately US $130 million,
largely during the first contract year of 2010. This agreement allows
TowerJazz to realize profits from its valuable manufacturing expertise and
asset base, and to enlarge its sphere of activity in Asia alongside the
recently announced customer agreements with GrandTek, C&S Technology, TAEJIN
Technology, Dongwoon Anatech, Cesign, SWID and 3PEAKIC Microelectronics. In
addition to the substantial cash-in generated by this engagement, TowerJazz
expects that this project will lead to additional business opportunities
through new customers and ventures.  

 

    "It is a notable achievement and acknowledgement of our capabilities that
TowerJazz was chosen to provide the know-how, training, and turnkey
manufacturing solutions to a project of this scope and significance," said
Russell Ellwanger, Chief Executive Officer of TowerJazz. "This project is
accretive to our strategy to grow market share within Asia, as evidenced by
the opening of a sales and technical support office in Korea this year with
multiple design wins and customer announcements in that region, particularly
within Power Management. Additionally, our ownership percentage, Board
representation and manufacturing agreement with HHNEC in Shanghai, China is
further affirmation of our commitment to growth in Asia.  We expect that this
project will strengthen our traction in this geographic area and trust that
our Asian customer base will multiply as a result."


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