TowerJazz Signs Definitive Agreement with Customer to Receive $30M Advance Payment for Capacity Expansion

TowerJazz today announced it has signed a definitive agreement with one of its customers to receive $30 million advance payment which would be used for capacity expansion in its worldwide fabs. TowerJazz will provide secured capacity to support current and forecasted customer manufacturing needs. Russell Ellwanger, TowerJazz CEO, stated, "We are seeing through customers' forecasts, purchase orders, and our sales and marketing channels a very high demand, exceeding our current manufacturing capabilities, primarily in our analog 0.18um technology processes. Hence, we are implementing a four-pronged, proactive strategy as follows: (i) we are rapidly cross qualifying our Israeli, US and Japanese fabs for manufacture of products and technology platforms originating in our US and Israeli fabs, (ii) we are investing in capacity to enable quick ramp up of more products, (iii) we are continuously exploring M&A opportunities and (iv) we are engaging in customer funded programs for customers who need capacity reservation and/or new capabilities and capacity. This signed definitive agreement is an example of the latter. We continue to execute on all fronts in parallel." About TowerJazz Tower Semiconductor Ltd.

and its fully owned U.S. subsidiary