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Tower bags 2008 wafer order from U.S. IDM

Posted: 24 Sep 2007 ?? ?Print Version ?Bookmark and Share

Keywords:wafer order? foundry? manufacturing?

Tower Semiconductor Ltd has secured an order from an unnamed U.S. IDM for thousands of wafers of 130nm chips worth millions of dollars per month.

Under the deal, manufacturing process technology is set to be transferred to Fab2 during the coming several quarters after which Tower expects to manufacture between five and eight thousand wafers-per-month, utilizing the new tools it is purchasing from companies such as Advanced Micro Devices Inc. and Intel Corp.

High-volume production shipments are expected to commence towards the end of 2008 which point Tower said the U.S. IDM would likely become one of its top three customers.

The Israel foundry, however, did not name the customer. One report in Israel said the customer is Motorola Inc. although Motorola is not an IDM. This could be explained if Motorola, a manufacturer of mobile phones, is the IDM's customer. Motorola used to manufacture ICs but spun-off its chip division to form Freescale Semiconductor Inc.

"We are pleased, and feel it quite an achievement, that an IDM of this size, capability and reputation chose Tower to be its foundry partner for a critical and projected very large volume family of products," said Tower CEO, Russell Ellwanger, in a statement. "We are excited that this product line will utilize our expanded manufacturing capacity in the advanced 0.13-micron technology. We are in advanced stages of closing the deals to acquire the additional tools needed to increase our capacity in Fab2 to a level that will meet this demand."

- Peter Clarke
EE Times Europe

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