TowerJazz acquires Maxim's fabrication facility in Texas

TowerJazz, the global specialty foundry leader, has completed its acquisition of an 8-inch wafer fabrication facility in San Antonio, Texas, United States from Maxim Integrated Products, Inc. (NASDAQ: MXIM), the company said.

This acquisition will expand TowerJazz´s current worldwide manufacturing capacity, cost-effectively increasing its production by about 28,000 wafers per month. The availability of capacity is needed to serve the company´s current and forecasted robust customer demand.

As part of the transaction, the companies signed a long-term supply agreement of 15 years, under which TowerJazz will manufacture products for Maxim in the San Antonio facility, in quantities which will allow for a gradual ramp of third party products. As previously announced, Maxim received as consideration USD40 million paid with approximately 3.3 million ordinary shares of TSEM, representing approximately 3 percent of company´s fully diluted share count. This was calculated based on the average closing price of TSEM in NASDAQ during the last 15 trading days.

Tower Semiconductor and its fully owned US subsidiary Jazz Semiconductor, Inc. operate collectively under the brand name TowerJazz, the global specialty foundry leader. TowerJazz manufactures integrated circuits, offering a broad range of customizable process technologies.

Maxim is bringing new levels of analog integration to automotive, cloud data center, mobile consumer, and industrial applications.