Towerjazz to buy Maxim Integrated’s Wafer Manufacturing Plant in Texas

18 November, 2015

The $40 million shares agreement is expected to be finalized in January 2016. TowrJazz will retain the site’s nearly 500 employees

The $40 million shares agreement is expected to be finalized in January 2016.  TowrJazz will retain the site’s nearly 500 employees

Maxim's facility in San Antonio, Texas
Maxim’s facility in San Antonio, Texas

The specialty foundry TowerJazz (NASDAQ/TASE:TSEM) from Israel will pay $40 million in ordinary stocks to purchase Maxim’s (NASDAQ:MXIM) 8-inch fabrication facility in San Antonio, Texas.

This The proposed deal will expand TowerJazz’s worldwide anufacturing capacity by approximately 28,000 wafers per month. TowerJazz and Maxim expect to close the transaction in January 2016.

All of the site’s nearly 500 employees will be retained. The companies have also signed a long-term supply agreement for TowerJazz to manufacture products for Maxim in the San Antonio facility.

The facility can support the advanced analog platforms using geometries down to 130nm. TowerJazz plans to qualify its core specialty technologies, including advanced Radio-Frequency Silicon-on-Insulator (RF-SOI).

TowerJazz sales in the last decade
TowerJazz sales in the last decade

“We know Maxim very well, having been their supplier for a family of high-end SiGe based products for many years. During this period we have developed an appreciation for Maxim’s technical capabilities, business vision and corporate culture,” said Russell Ellwanger, TowerJazz’s Chief Executive Officer.

TowerJazz current production capacity includes two manufacturing facilities in Israel (150mm and 200mm), one in the U.S. (200mm) and three additional facilities in Japan (two 200mm and one 300mm) through TowerJazz Panasonic Semiconductor (TPSCo), established with Panasonic Corporation of which TowerJazz has the majority holding.

Recently TowerJazz has reported record revenues of $244.2 million in the third quarter of 2015, reflecting year over year organic growth of 23%. Its annual 2015 sales are expected to reach approximately $960 million.

“We are on track and guiding fourth quarter of this year to achieve our previously announced milestone of breaking a $1 billion,” said Ellwanger.

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Posted in: Business , News , Semiconductors

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