Tower Semiconductor (Nasdaq: TSEM; TASE: TSEM) and Crocus Technology, a developer of Magnetic Random Access Memory (MRAM), have announced an agreement to port Crocus’ MRAM process technology into Tower’s manufacturing environment. Tower will perform all manufacturing steps required for Crocus’ next-generation MRAM technology in its 200mm Fab2 facility.
The chips that Tower will manufacture for Crocus will mainly be for use in computing products, palm-top computers, and telecommunications devices and networks. Crocus has committed to producing hundreds of wafers a month at Tower, for a sum in the millions of dollars annually, and at a high rate of profit. In addition, Crocus has allocated to Tower ordinary shares valued at $1.25 million in exchange for services to be provided by Tower.
Shares in Tower rose strongly on the news.
“Transitioning from an incubation setting to a commercial production environment is a major leap forward for Crocus,” said Jean-Pierre Braun, co-founder and CEO of Crocus Technology. “Tower is known as a leading foundry in Non-Volatile Memory solutions and is an ideal partner to make this a very successful high margin business for both companies.”
"At Tower, we are convinced of the industry-changing potential of MRAM, and we are partnering with the company best able to capitalize on this potential. We view this as a high volume market with a long life on Tower’s platform," said Dr. Avi Strum, vice president & general manager, Specialty Business Unit at Tower.
Tower shares closed at $0.2799 in New York yesterday, giving the company a market cap of $45 million. On the Tel Aviv Stock Exchange, the company's share price is currently up 10.5%, at NIS 1.284.
Published by Globes [online], Israel business news - www.globes.co.il - on June 18, 2009
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