Independent foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM), is expected take part in the development of Shai Agassi's electric car venture. Tower is a subsidiary of Israel Corp. (TASE: ILCO), which is also a major investor in Agassi's venture.
Tower will apparently develop the controlling processor, which is considered a key component in the electric car. The component will be a highly complex development involving non-volatile memory, and is considered to have high sales potential in the automotive field in the coming years. This, in light of the extensive investment by large automakers in the hybrid and electric vehicles.
The function of the component will be to regulate the transfer of power from the batteries to the wheels, and to coordinate between the various motors and sensors in the vehicle, and to enhance the efficiency of the batteries, and more.
Tower had hinted that it intends to invest in this field in a presentation by CEO Russell Ellwanger at a New York investment conference. Tower currently has a division engaged in development of automotive products, which produces processors for safety and comfort related electronic systems such as ABS and electric windows.
Another potential client for Tower's product could be the joint electric car project by Israel Corp. and Chinese automaker Chery.
Published by Globes [online], Israel business news - www.globes-online.com - on January 17, 2008
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