Fab ramp-up to increase 0.13-micron capacity

The Tower Semiconductor Board of Directors has approved the company's plan to accelerate the ramp up of Fab 2 by approximately 50%.

The Tower Semiconductor Board of Directors has approved the company's plan to accelerate the ramp up of Fab 2 by approximately 50%.

Furthermore, the company and its lender banks, Bank Leumi and Bank Hapoalim, have signed an MOU for the refinancing of the company's $527 million long-term debt and The Israel Corporation committed to invest $100 million in the company.

Tower's Board of Directors approved the company's plan to accelerate the ramp up of Fab 2 to meet the company's customers' and products qualifications needs, based on its customer pipeline, reinforced by forecasted market conditions.

The company will need to raise approximately $130 million during 2006, which will take the current Fab 2 capacity to approximately 24,000 wafers per month, including a considerable increase in the 0.13 micron capacity.

Russell Ellwanger, Tower's Chief Executive Officer, said: "Building on our recent achievements, we have made a strategic decision to accelerate Fab 2's ramp-up plan to better serve and meet both our established and newer customers' longer term expectations and capacity requirements, while bringing added value to our shareholders".

Back to top