Specialty foundry TowerJazz Ltd. (Nasdaq: TSEM; TASE: TSEM) will boost capacity at both its Israeli and California fabs, in order to meet customer demand, which is exceeding current capacity.
TowerJazz will boost capacity at its Fab2 in Migdal Ha'Emek by 30,000 wafers per year, and will boost capacity at its Newport Beach, California fab by 36,000 wafers per year. The company expects to buy $15 million worth of equipment for this purpose, and predicts that the rate of return on the investment of six months, based on customer forecasts.
TowerJazz CEO Russell Ellwanger said, “Our plans for capacity expansion are based upon customer forecasts and projections which support continued growth as we gear up for a strong 2010 and 2011."
TowerJazz's share closed at $1.26 on Nasdaq on Friday, giving a market cap of $135 million. The share rose 4% by midday on the TASE to NIS 4.97.
Published by Globes [online], Israel business news - www.globes-online.com - on February 16, 2010
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