TowerJazz Announces Kick-Off of its JV with Panasonic

Business Wire: TowerJazz announces the successful completion and kick-off of the JV with Panasonic. Within the scope of the JV, Panasonic transferred its semiconductor manufacturing process and capacity tools of 8 inch and 12 inch wafers at its Hokuriku factories (Uozu, Tonami and Arai) to the JV, committing to acquire its products from the JV for a long-term period of at least five years of volume production. TowerJazz is holding 51% of the shares of the JV, and its revenues are increased by approximately $400 million per annum. Panasonic Corporation will be a 49% shareholder of the JV.

TowerJazz will offer to its customers a capacity of a 300mm fab including 65nm CMOS image sensor process with low dark current and high QE, and added available capacity of approximately 800,000 wafers per year (8 inch equivalent) in three manufacturing facilities in Japan. The JV will continue the production of Panasonic's semiconductor processes as Panasonic's subcontractor as well as seek to expand operations by leveraging TowerJazz's customers and businesses to capture out-of-group sales.

In addition, TowerJazz intends to cease the operations of its Nishiwaki (Japan) facility in the course of restructure and rationalization of its Japan manufacturing and business plans. Nishiwaki fab used to manufacture CMOS sensors for Aptina. TowerJazz has acquired it from Micron in 2011.