Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) (which trades as TowerJazz) has announced the extension of its business relationship with power management technology company International Rectifier (IR), through a seven-year agreement under which Tower will manufacture several product families for IR at its fabs in Japan (Fab 4) and in Migdal Ha'emek.
IR chose to extend its relationship with Tower after success in working with Tower's TOPS (Transfer Optimization and Process Services) business unit; a group with engineering proficiency and proven models to enable Integrated Device Manufacturers (IDMs) the shortest qualification time and fastest time-to-market for moving their manufacturing into high volume foundries.
“IR has enjoyed a strong relationship with TowerJazz, recognizing the company as an International Rectifier Supplier of the Year 2012 based upon criteria including alignment of business goals, manufacturing flexibility and responsiveness. With its goal to be the specialty foundry leader, TowerJazz continues to meet our business needs and we are pleased to enter into this agreement,” said Oleg Khaykin, president and CEO of International Rectifier.
“There is no greater affirmation a company can receive than a valued lead customer extending an existing agreement. International Rectifier, from its inception, has an undeniable brand as a power management leader. We look forward to many more years of partnership as we protect IR’s intellectual property as well as that of all our other customers,” said Tower CEO Russell Ellwanger.
The current deal represents one of Tower's most important agreements, and is expected to generate revenue in the hundreds of millions of dollars. According to market estimates, annual revenue under the agreement will be $50-70 million in the period 2014-2020.
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2013
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