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TowerJazz goes deeper into Asia

Posted: 27 Nov 2009 ?? ?Print Version ?Bookmark and Share

Keywords:TowerJazz China deal? Asia market? manufacturing?

Specialty foundry TowerJazz has signed a definitive agreement with an Asian entity, furthering the company's corporate strategy to penetrate the Asian markets and leverage its manufacturing know-how to expand its business in the 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 $130 million, largely during the first contract year of 2010. This agreement also 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, CEO 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."

Editor's Note:
EE Times Asia Nov. 26 erroneously implied that TowerJazz had entered into a new agreement with HHNEC. HHNEC has clarified that no such agreement exists. TowerJazz has entered into an agreement with an undisclosed entity.
EE Times Asia apologizes to HHNEC, TowerJazz and their customers for the unfortunate error.

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