Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
© edhar-yralaits-dreamstime.com
Business |

TowerJazz and Panasonic form JV

TowerJazz signs definitive agreement creating joint venture with Panasonic Corporation to acquire its 3 semiconductor factories in Japan and to manufacture Panasonic and additional products.

TowerJazz and Panasonic Corporation has signed a definitive agreement to create a joint venture (JV) to manufacture Panasonic’s products. Within the scope of the JV, Panasonic will transfer its semiconductor manufacturing process and capacity tools of 8 inch and 12 inch wafers at its Hokuriku factories (Uozu, Tonami and Arai) to the JV, committing to acquire its products from the JV for a long term period of at least five years of volume production, and will transfer to TowerJazz 51% of the shares of this JV. Following this transaction, TowerJazz will rationalize its Japanese business, which may include fab consolidations between TowerJazz's Nishiwaki facility and the JV's facilities, and to this end, TowerJazz is evaluating potential ventures for the Nishiwaki facility. The JV will continue the production of Panasonic's semiconductor processes as Panasonic's subcontractor as well as seek to expand operations by leveraging TowerJazz's customers and businesses to capture out-of-group sales. Amir Elstein, TowerJazz Chairman, stated, "This acquisition and the JV creation with Panasonic Corporation is just one of the culminating strategic events, that is enhancing TowerJazz's business leadership, and is intensively focused on creating shareholder value." Russell Ellwanger, TowerJazz CEO, commented, "We are honored to place our name side by side with Panasonic Corporation to create an innovative joint venture that provides high capacity, highest quality, multiple world leading analog platforms and, as well, 300mm advanced technology nodes. This partnership brings together two leaders – Panasonic, an acknowledged analog components and systems leader, and TowerJazz, a recognized analog foundry leader - to create a company that will serve and grow the analog foundry space as no existing single foundry company can." As consideration for its 51% equity holding in the JV, after closing of this transaction, TowerJazz will issue to Panasonic ordinary shares in the value of approximately USD 8 million, to be calculated based on TowerJazz average shares value during March 2014. As a result of holding its ordinary shares, Panasonic will become a minority stakeholder in TowerJazz. The JV balance sheet assets will include, among others, the cap-ex tools of the three fabs, cash in the amount of approximately USD 40 million to be invested by Panasonic and work in process (inventories) manufactured at Panasonic fabs before the closing date. Closing of the transaction expected to be by April 2014.

Ad
Ad
Load more news
March 28 2024 10:16 am V22.4.20-2
Ad
Ad