Dongbu Electronics and Tower Semiconductor to Develop Technology and Share Foundry Capacity.Business Editors/High-Tech Writers SEOUL, Korea & MIGDAL HAEMEK Migdal HaEmek (Hebrew: מִגְדַּל הָעֶמֶק, also officially spelt Migdal HaEmeq, Arabic: , Israel--(BUSINESS WIRE)--Oct. 8, 2001 Accord Focuses on Mutual Development of Foundry-Compatible 0.18-micron CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. Processes Dongbu Electronics Co., Ltd. and Tower Semiconductor Ltd. (Nasdaq:TSEM TSEM Tower Semiconductor Ltd. (stock symbol) TSEM Transmission Scanning Electron Microscopy TSEM TOW System Evaluation Missile )(TASE TASE Tel Aviv Stock Exchange TASE The All Seeing Eye TASE Tactical Air Support Element TASE Thrust Assessment Support Environment TASE Telecontrol Application Service Elements (IEC communications protocol) :TOWER) today announced the signing of a technology and manufacturing agreement to jointly develop CMOS manufacturing processes that will be compatible with mainstream foundry processes. Under terms of the agreement, beginning in the first quarter of 2002, both parties will begin to offer jointly developed foundry-compatible 0.18-micron processes that have the proven quality and performance of Toshiba's advanced CMOS Technology, which both foundries are licensed to use. Moreover, each foundry will become a second source for the other, thus enhancing their respective customer support. "We welcome this opportunity to work closely with Tower, and are confident that our collaborative efforts will benefit both companies," said Mr. Sin Hyuk Han, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Dongbu Electronics. He praised Tower's market focus and technologies as well as its renowned customer service, adding, "The synergy that will come from this accord will ultimately benefit our respective customers." "We look forward to working with Dongbu to deliver foundry-compatible processes that maximize both quality and cost efficiency," said Dr. Yoav Nissan-Cohen, Tower Co-CEO. "Our common technology base enables the two companies to start the development work immediately, and to effectively provide second source capability even prior to the completion of our Fab 2." Dr. Nissan-Cohen added, "We were impressed by the expertise and capabilities of Dongbu's technical staff and certain it will have major contribution to the success of our cooperation." Tower Semiconductor Tower Semiconductor Ltd. is an independent wafer manufacturer, strategically focused on advanced Flash memory and CMOS Image Sensor A CMOS-based chip that records the intensities of light as variable charges similar to a CCD chip. Although initially used in less expensive digital cameras, the quality of CMOS sensors has improved steadily. CMOS sensors have advantages over CCDs. technologies. Tower provides manufacturing and turnkey services for integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. on silicon wafers in geometries from 1.0 to 0.35 micron, using its advanced technological capabilities and the proprietary designs of its customers. Tower is now building an advanced fab adjacent to its current facility in Migdal Haemek, Israel. The new fab, referred to as "Fab 2," will employ approximately 1,000 employees and produce up to 33,000 200-mm wafers per month in geometries of 0.18 micron and below, using advanced CMOS technology from Toshiba. Funding for the project is being provided mainly by wafer partners, Israel Corporation - Technologies (ICtech) Ltd. (a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the Israel Corp (TASE:ILCO ILCO Institute of Law Clerks of Ontario ILCO Iranian Light Crude Oil ILCO International Logistics Control Office ILCO Illinois Lock Company ILCO Independent Lock Company ILCO International Logistics Control Organization )), other financial investors, a grant from the Israeli Government Investment Center, a bank credit line and Tower's own resources. Wafer Partners include SanDisk Corporation (Nasdaq:SNDK), Alliance Semiconductor (Nasdaq:ALSC ALSC Association for Library Service to Children ALSC Adirondack Lakes Survey Corporation ALSC Afloat Logistics and Sealift Capability ALSC American Lumber Standards Committee, Inc. ALSC Advanced Logistics Systems Center (AFMC) ), Macronix International (Nasdaq:MXICY) and QuickLogic Corporation (Nasdaq:QUIK). For additional information please visit www.TowerSemi.com Dongbu Electronics Dongbu Electronics is a privately held wafer foundry specializing in advanced CMOS processing for logic, mixed-signal, embedded flash and system-on-chip designs. With worldwide business development offices based in the Silicon Valley city of Mountain View, California For the census-designated place, see Mountain View, Contra Costa County, California. For other places called "Mountain View", see . Mountain View is a city in Santa Clara County, in the U.S. state of California. The city gets its name from the views of the Santa Cruz Mountains. , Dongbu operates a state-of-the-art pure-play foundry in Eumsung, Korea, near Seoul, where it has a wafer fab which will be ramping up to 45,000 200-mm wafers per month in early 2003 in geometries of 0.18 micron and below. Dongbu is a key global supplier within Korea's vibrant semiconductor manufacturing, test and assembly infrastructure. Major investors include Toshiba Corporation (company) Toshiba Corporation - A Japanese technology manufacturer with 364 subsidiaries worldwide. Toshiba makes and sells electronics for home, office, industry and health care including information and communication systems, electronic components, heavy electrical apparatus, , the world's second largest semiconductor manufacturer, and the Dongbu Group, a multi-billion dollar industrial and financial conglomerate. For more information, visit www.dsemi.com Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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. Potential risks and uncertainties include, without limitation, risks and uncertainties associated with (i) satisfaction of the conditions under the agreements with the Fab 2 equity and wafer partners, the Israeli Investment Center and Tower's banks, (ii) obtaining additional financing for the Fab 2 project from equity and/or wafer partners, (iii) completing the construction of a new wafer manufacturing facility, (iv) conditions in the market for foundry manufacturing services and in the market for semiconductor products generally, (v) successful completion of the development and/or transfer of advanced CMOS process technologies to be utilized in Tower's existing facility and in Fab 2, (vi) obtaining additional business from new and existing customers, (vii) market acceptance and competitiveness of the products to be manufactured by Tower for customers using these technologies and (viii) ramp-up of production at Fab 2. A more complete discussion of risks and uncertainties that may affect the accuracy of these statements, and Tower's business generally, is included at "Item 3. Key Information -- Risk Factors" in Tower's most recent Annual Report on Form 20-F. |
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