MIGDAL HAEMEK, Israel--(BUSINESS WIRE)--September 13, 1999--Tower Semiconductor Ltd. (NASDAQ: TSEMF) today announced that
it has signed a three year wafer supply agreement with Motorola Inc. (NYSE: MOT).
Aimed at ensuring ample capacity for certain of Motorola's advanced mixed-signal and other proprietary devices, this agreement will
allow Motorola to continue to have a reliable and high quality wafer manufacturing supply from Tower. The agreement reflects the
continued strategic desire of Motorola to partner with leading foundry manufacturers, as well as Tower's continued focus on providing
specialty foundry services to its strategic customers.
"We are very pleased with Motorola's decision to carry on its partnership with Tower," said Reuven Marko, vice president of marketing
for Tower. "We have been supplying processed wafers to Motorola since 1994 and now have successfully expanded our services beyond
the standard CMOS processes in line with our goal to provide specialized foundry services to our customers. The capacity made available
by Tower will assist Motorola, one of the world's leading semiconductor manufacturers, in reaching its aggressive goals for
manufacturing outsourcing."
"Motorola is proud of its long-standing relationship with Tower, which has positioned Tower as an important, strategic, foundry partner
for us," said Wayne Nesbit, vice president of global External Technology for Motorola. "Tower provides Motorola with responsiveness
and service that we can count on."
The agreement allows Motorola to significantly increase its wafer capacity at Tower utilizing several of Tower's processes as well as
processes transferred from Motorola or adapted to suit the special requirement of Motorola integrated circuits. The agreement is another
milestone in Motorola's strategy to reach an external supply of about fifty percent of its IC manufacturing needs. |
