Israel's M-Systems Negotiating to Invest in Tower Semiconductor
--From AOl News.-- Cooters
Tel Aviv, Oct. 12 (Bloomberg) -- M-Systems Flash Disk Pioneers Ltd. said it's negotiating to invest in Tower Semiconductor Ltd., which is planning a new semiconductor factory, as it looks to add new producers of its memory chips.
Tower, which makes chips to customer specifications, is looking to raise at least $150 million from about three chipmakers to help pay for the $1.25 billion plant. It's already raised $75 million each from Alliance Semiconductor Corp. and Sandisk Corp., and has said it is talking with other investors from the U.S., Europe and Japan.
For M-Systems, a Tel Aviv-based chipmaker whose customers include Microsoft Corp., the investment would include a guarantee by Tower to supply chips that provide memory storage in Web telephones and network computers. The company, which currently relies on Samsung Corp. and Toshiba Corp. for manufacturing, would also benefit from its proximity to the Tower plant, to be located about an hour away in the northern Israel town of Migdal Ha'Emek.
``We are looking at it positively,'' said M-Systems Chief Financial Officer Ronit Maor. ``The fact that it's an Israeli (factory) is an advantage.''
M-Systems, which sees sales tripling this year to $90 million, is looking at other chip manufacturers in addition to Tower, Maor said.
Earlier this week, Israel's Finance Ministry said it would back a $250 million grant to help build the plant, which will produce 0.18 micron chips. The grant is expected to help Tower attract the final investors for the project.
Oct/12/2000 5:56 ET |
