Mar 26, 2019

TowerJazz extends agreement with Panasonic Semiconductor TowerJazz and TowerJazz Panasonic Semiconductor Company (TPSCo), announce that 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 utilise 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 USD 20 million 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 utilisation ramp.“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,” says Russell Ellwanger, TowerJazz CEO and TPSCo Chairman, in a press release.TowerJazz to maintain its 51% holding of TPSCo shares, with PSCS as a 49% shareholder.