TowerJazz, the global specialty foundry leader, and TowerJazz Panasonic Semiconductor Company (TPSCo), today announced 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 utilize 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 20 million USD 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 utilization ramp. L-rumors

Russell Ellwanger, TowerJazz CEO and TPSCo Chairman commented, “The TPSCo partnership has brought together two leaders – Panasonic, an acknowledged analog components and systems leader, and TowerJazz, a recognized analog foundry leader- having created a company that serves and continues to grow the analog foundry space as no other existing single foundry can. 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.”

Through TPSCo, TowerJazz offers its customers advanced 300mm analog technology manufacturing platforms such as state-of-the-art 65nm CMOS image sensor solutions, RF SOI 65nm, and 65nm Bipolar-CMOS-DMOS (BCD) power management platform.

TowerJazz to maintain its 51% holding of TPSCo shares, with PSCS as a 49% shareholder.

About TowerJazz

Tower Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM) and its subsidiaries operate collectively under the brand name TowerJazz, the global specialty foundry leader. TowerJazz manufactures next-generation integrated circuits (ICs) in growing markets such as consumer, industrial, automotive, medical and aerospace and defense. TowerJazz’s advanced technology is comprised of a broad range of customizable process platforms such as: SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power management (BCD and 700V), and MEMS. TowerJazz also provides world-class design enablement for a quick and accurate design cycle as well as Transfer Optimization and development Process Services (TOPS) to IDMs and fabless companies that need to expand capacity. To provide multi-fab sourcing and extended capacity for its customers, TowerJazz operates two manufacturing facilities in Israel (150mm and 200mm), two in the U.S. (200mm) and three facilities in Japan (two 200mm and one 300mm). For more information, please visit www.towerjazz.com.