Tower Semi to transfer mfg knowhow to Asia

LONDON, UK: Tower Semiconductor Limited (which trades as TowerJazz), based in Migdal Haemek, Israel, says it is planning to transfer manufacturing knowledge and some equipment to an Asia-based company to enhance its production.

However, Tower Semiconductor Limited, the loss-making foundry, did not name the Asian company which it will support. Nor has Tower Semiconductor specified the type of equipment or process knowledge that it will export.

In a statement, Tower Semiconductor said the deal will add about $130 million to its revenues – mainly in the first contract-year of 2010.

The deal with the Asia-based company, according to Tower Semiconductor, is in accordance with the its corporate strategy of penetrating markets in Asia and also making use of its manufacturing knowledge and assets to spread its business in the Asia region.

Tower Semiconductor mainly produces ICs, with geometries of between 1.0-micron and 0.13-micron.

The company’s other products include a vast array of customizable process technologies such as BiCMOS, power management (BCD), mixed-signal and RFCMOS, CMOS image sensor, non-volatile memory (NVM), SiGe, and MEMS capabilities.

Tower Semiconductor bought a 10 per cent stake in Shanghai Hua Hong NEC Company Limited (HHNEC) when it acquired Jazz Semiconductor. (Jazz Semiconductor also had manufacturing pacts with Advanced Semiconductor Manufacturing Corporation Limited).

Industry watchers say that Tower Semiconductor could be planning to support one of these Asia-based firms by transferring equipment and manufacturing knowhow, but they are not at all certain about it.