|Traded as||TASE: TSEM NASDAQ: TSEM|
|Headquarters||Migdal Haemek, Israel|
|Revenue||$ 509.26 million (2010)|
|Operating income||$ 43.32 million (2010)|
|Net income||$ 42.37 million (2010)|
Tower Semiconductor Ltd. (TowerJazz) and its fully owned U.S. subsidiary Jazz Semiconductor, operate collectively under the brand name TowerJazz, manufacturing integrated circuits with geometries ranging from 1.0 to 0.13 micron. Tower Semiconductor is an Israeli company that manufactures semiconductors and integrated circuits for the electronics industry. It is a public company that is traded on NASDAQ and the Tel Aviv Stock Exchange. The company is included in the TA-100 Index and the TA BlueTech-50 Index. TowerJazz offers a range of customizable process technologies, including SiGe, BiCMOS, Mixed-Signal and RFCMOS, CMOS Image Sensor, Power Management (BCD), and Non-volatile memory (NVM) as well as MEMs capabilities. The company maintains two manufacturing facilities in Israel (FAB1 and FAB2), one in NPB CA, U.S. (FAB3), and one in Nishiwaki, Japan (FAB4) with additional capacity available in China through manufacturing partnerships. In 2010, TowerJazz recorded annual revenues of $509 million, and became the #1 specialty foundry based on revenues, with 70% of revenue growth year-over-year.
A National Semiconductor built plant
Tower Semiconductor company started out as a manufacturing plant for National Semiconductor in Migdal Haemek, Israel. The plant was established by the initiative of Israel engineer Dr. Giora Yaron, who began working as a physicist at the head office of National Semiconductor in Santa Clara, California in 1979, and persuaded the management to invest in Israel. Initially establishing a research and development center in Herzliya and in 1984 laid the cornerstone for the production plant. Mayor of Migdal Haemek Shaul Amor, was able to change the status of the city to a development zone area, to allow National Semiconductor to win this maximum state benefits provided by the investment encouragement law. Construction of the plant was completed in 1989. One of the first products that were manufactured by the company was an EPROM memory chip, which was developed by the Flash memory innovator Boaz Eitan at start-up company WaferScale Integration at the time.
In 1993, due to the global crisis in the semiconductor industry at the time, National Semiconductor decided to close the plant in Migdal Haemek, but the closure was prevented after the Israel Corporation bought it for $250 million and established it as an independent company named Tower Semiconductor. In 1994 Tower had an IPO on the NASDAQ and became a public company, in 1995 it has a secondary offering and later the company's shares began trading also on the Tel Aviv Stock Exchange. The company also has established research and development center in Netanya, Israel.
Establishment of Fab 2
In 2001 the construction of a new manufacturing facility (Fab 2), which produces chips with a feature size of 0.18 to 0.13 microns, started with a total investment of $ 1.1 billion. The investment came from Israel Corporation, a government grant of $ 250 million and $550 million credit from Bank Leumi and from Bank Hapoalim total . The construction of the plant was completed in 2003.
Merger with Jazz Technologies
In September 2008 Tower Semiconductor bought US based analog mixed signal semiconductor company Jazz Technologies in a share swap deal under which Jazz's shareholders received 1.8 Tower shares for each Jazz share. On the basis of the value of Tower's share at the time the merger agreement was signed, the deal originally valued the US company's shareholders' equity at $40 million. Jazz's production facility in Newport Beach California became known as FAB 3.
Purchase of a Micron Technology factory
In April 2011 Tower Semiconductor announced it is buying a wafer fab belonging to Micron Technology Inc. in Nishiwaki City, Hyogo prefecture, Japan, for $140 million. The purchase nearly doubled the internal manufacturing capacity at Tower, increasing it by about 60,000 wafers per month. The fab, which can support geometries down to 95 nm, is part of plans to get Tower's annual revenue up to $1 billion by 2014. In February 2012 Tower announced that its TowerJazz Japan subsidiary was selected by Japan's Ministry of Economy, Trade and Industry to receive a capital expenditure subsidy and that the investment would be used to upgrade Tower's manufacturing facilities in Japan.
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- "Tower unit wins Japanese gov't subsidy". Globes. 13 February 2012. Retrieved 20 February 2012.