FORM
6-K
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
For the month of
February 2010 No. 5
TOWER
SEMICONDUCTOR LTD.
(Translation
of registrant's name into English)
Ramat
Gavriel Industrial Park
P.O.
Box 619, Migdal Haemek, Israel 23105
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover Form 20-F or Form 40-F.
Form 20-F
S Form
40-F £
Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes £ No
S
On
February 16, 2010, the registrant announces that TowerJazz will expand its
global capacity based on customer momentum.
This Form
6-K is being incorporated by reference into all effective registration
statements filed by us under the Securities Act of 1933.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
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TOWER
SEMICONDUCTOR LTD.
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Date:
February 16, 2010
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By:
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/s/ Nati Somekh
Gilboa
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Name:
Nati Somekh Gilboa
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Title:
Corporate Secretary
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TowerJazz
to Expand Global Capacity Based on Customer Momentum
Further
increases production in both Israeli and US manufacturing
facilities
MIGDAL HAEMEK, Israel, and NEWPORT
BEACH, Calif., February 16, 2010 – TowerJazz, the global specialty
foundry leader, today announced it has accelerated plans for additional capacity
expansion to meet customer demand, which is exceeding current capacity. In the
company’s Fab2 located in Israel, capacity will increase by approximately 30,000
wafers per year in order to meet the greatly expanding needs of customers for
its wide range of specialty process technologies. In the company’s manufacturing
facility located in Newport Beach, CA, capacity will be increased by 36,000
wafers per year to enable the fab to accommodate the substantial increase in
demand necessitating more than 100% utilization. The total payments to purchase
the equipment by TowerJazz are expected to be approximately $15 million,
resulting in an increase of approximately 66,000 wafers per year. Based on
customer forecasts, this cost-effective investment has a rate of return (ROR) of
two quarters.
Ephie
Koltin, Senior Vice President, Worldwide Operations, TowerJazz said, “By rapidly
moving in and qualifying equipment to meet increasing demand, we will have an
almost immediate return on our capital investment. This model of cost-effective,
used tool purchase combined with accelerated qualification and fab ramp, allows
us to align real time with our customers’ forecasts with minimal idle tools. The
increase in capacity has the obvious benefit of decreasing our fixed cost per
wafer out, and combined with continual overall tool and supplier efficiency
programs, is accretive to our already best-of-class specialty foundry
operational metrics.”
Russell
Ellwanger, CEO of TowerJazz stated, “Our plans for capacity expansion are based
upon customer forecasts and projections which support continued growth as we
gear up for a strong 2010 and 2011. We are committed to our customers’
success as demonstrated by our move to quickly expand capacity and we are
excited to help enable their market growth and to increase our market share. The
additional equipment will obviously increase our wafer output enabling a higher
revenue base, but as well, some tools are specifically directed to continue to
grow our competitiveness within high value segments of the specialty
foundry arena. This mode of quick ramp based upon identified customer need is a
win-win, demonstrating our dedication to enable customer success and foster
long-term strategic relationships while keeping shareholder value strongly in
mind.”
About
TowerJazz
Tower
Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM), the global
specialty
foundry
leader 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. TowerJazz provides industry leading
design enablement tools to allow complex designs to be achieved quickly and
more accurately and offers a broad 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. To provide world-class customer service, TowerJazz maintains
two manufacturing facilities in Israel and one in the U.S. with additional
capacity available in China through manufacturing partnerships. For more
information, please visit www.towerjazz.com.
Safe
Harbor Regarding Forward-Looking Statements
This
press release includes forward-looking statements, which are subject to risks
and uncertainties. Actual results may vary from those projected or implied
by such forward-looking statements. A complete discussion of risks and
uncertainties that may affect the accuracy of forward-looking statements
included in this press release or which may otherwise affect Tower and/or Jazz’s
business is included under the heading "Risk Factors" in Tower’s most recent
filings on Forms 20-F, F-3, F-4 and 6-K, as were filed with the Securities and
Exchange Commission (the “SEC”) and the Israel Securities Authority and Jazz’s
most recent filings on Forms 10-K and 10-Q, as were filed with the SEC,
respectively. Tower and Jazz do not intend to update, and expressly disclaim any
obligation to update, the information contained in this release.
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Company
Contact:
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Media
Contact:
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Melinda
Jarrell
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Lauri
Julian
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949/435-8181
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949/715-3049
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melinda.jarrell@towerjazz.com
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lauri.julian@towerjazz.com
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Investor
Relations Contact:
Levi
Noit
+972 4
604 7066
noit.levi@towerjazz.com