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Tower Semi and Siliconix Announce MOU

January 01, 2004 by Jeff Shepard

Tower Semiconductor Ltd. (Migdal Haemek, Israel) and Siliconix Inc. (Santa Clara, CA) announced that a memorandum of understanding (MOU) has been signed for a long-term manufacturing and supply arrangement between the parties.

Pursuant to the terms of the MOU, Siliconix will place with Tower orders valued at approximately $200 million for the purchase of semiconductor wafers to be manufactured in Tower's Fab 1 over a 7- to 10-year period, of which approximately $53 million is guaranteed and will be delivered over the three-year period starting at the first anniversary of the definitive agreement. Siliconix will advance to Tower $20 million to be used for the purchase of additional equipment required to satisfy Siliconix's orders, which will be credited towards the purchase price of the wafers.