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Title : PTSCo Extends CIS Supply Agreement with Panasonic through 2022
link : PTSCo Extends CIS Supply Agreement with Panasonic through 2022

PTSCo Extends CIS Supply Agreement with Panasonic through 2022

GlobeNewswire: TowerJazz and TowerJazz Panasonic Semiconductor Company (TPSCo) announced they have signed a three-year agreement, extending its previous business partnership with Panasonic through 2022. Under the agreement, Panasonic will continue to utilize TPSCo three manufacturing facilities in Japan for its semiconductor business. Wafer loading level from PSCS to TPSCo fabs is expected to remain similar, with a new pricing structure, resulting in revenue reductions of approximately $20m per quarter, with revenue and margins targeted to be compensated through presently implemented efficiencies and cost reduction activities, as well as third party revenue growth, including the present strong 300mm utilization ramp.

Through TPSCo, TowerJazz offers its customers 300mm manufacturing platforms such as 65nm CIS. TowerJazz to maintain its 51% holding of TPSCo shares, with Panasonic as a 49% shareholder.

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