TowerJazz to Invest $100 Million in Capacity Building

1 August, 2019

Announced 300mm fab capacity expansion plan to fulfill increased demand for RF SOI process, the 65nm BCD Power Management and the CMOS image sensor platforms

TowerJazz announced a capacity expansion plan for the Uozu fab in Japan, with total investments of approximately $100 million. The company will add capacity for the 300mm RF SOI process, the 65nm BCD Power Management and the CMOS image sensor platforms. Capacity is targeted to be installed during the first half of 2020. Russell Ellwanger, Chief Executive Officer of TowerJazz, explained: “Our 300mm activities have resulted in strong demand and forecasted excess demand for which we are now investing to fulfill.”

During second quarter of 2019 (ended June 30, 2019),  revenues had reached $306 million, reflecting 11% quarter over quarter organic growth (defined as total revenue excluding revenues from Panasonic in the TPSCo fabs and revenues from Maxim in the San Antonio fab). This organic growth of $20 million is offsetting to a great extent the $22 million Panasonic revenue reduction per the revised terms of the contract and a Maxim revenue reduction per the San Antonio fab acquisition agreement.

TowerJazz expects revenues for the third quarter of 2019 to grow to approximately $312 million. Revenues for 2018 were $1.3 billion compared to $1.39 billion in 2017. TowerJazz is a manufacturing services provider of integrated circuits (ICs). Its technology is comprised of SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power management (BCD and 700V), and MEMS. 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).

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Posted in: Semiconductors

Posted in tags: semiconductors