Tower launches powerline communications chip with Yitran

Yitran's technology allows telecommunications services to run over existing electrical wiring and power grid infrastructure.

Independent specialty foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) will manufacture a new line of chips for privately-held fabless communications semiconductor firm Yitran Communications Ltd. The two firms announced the production launch of the technology today.

Yitran develops powerline communications (PLC) technology, which allows telecommunications services to run over existing electrical wiring and power grid infrastructure. Tower will manufacture Yitran's new IT700 module at its 200-mm Fab 2. The chip will be manufactured using 0.18 micron NVM (nonvolatile memory) technology.

The IT700 PLC module is a small-sized and low-cost solution geared toward command and control applications such as remote metering management and smart home/building applications. According to Techno Systems Research, the market application space for such command and control modules is estimated to grow from 2.5 million units in 2005 to over 45 million units by 2010.

Yitran co-founder and CEO Avner Matmor said, "IT700 opens the door to many applications which have been waiting for a robust PLC solution and at a cost that will allow them to combine competitiveness both in performance and affordability."

Migdal Haemek-based Tower maintains two manufacturing facilities in Israel, with access to Jazz Semiconductor's fab in the US and manufacturing capacity in China through Jazz's partnerships with ASMC and HHNEC.

Tower completed an acquisition of Jazz Technologies in September. Tower CEO Russell Ellwanger, who is also chairman of Jazz technologies, will speak at Jazz's annual technology conference on October 22-23, 2008 at Jazz's Newport Beach headquarters. Ellwanger, in the keynote address, will present the strategic initiatives of Jazz and Tower post-merger.

Shares in Tower fell 1.9% on Nasdaq on Wednesday to close at $0.52, which reflects a market cap of $65.17 million. Since the beginning of the year, Tower shares have fallen 62.6%.

Published by Globes [online], Israel business news - www.globes-online.com - on October 2, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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