FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
For the month of September 2007 No. 2
TOWER SEMICONDUCTOR LTD.
(Translation of registrant's name into English)
RAMAT GAVRIEL INDUSTRIAL PARK
P.O. BOX 619, MIGDAL HAEMEK, ISRAEL 23105
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [_]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [_] No [X]
On September 20, 2007, Tower Semiconductor announced that it Wins
High-Volume Manufacturing Deal for Fab2 at the 0.13um Technology Generation.
Attached hereto is a copy of the press release.
This Form 6-K is being incorporated by reference into all effective
registration statements filed by us under the Securities Act of 1933.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TOWER SEMICONDUCTOR LTD.
Date: September 20, 2007 By: /s/ Nati Somekh Gilboa
--------------------------
Nati Somekh Gilboa
Corporate Secretary
TOWER SEMICONDUCTOR WINS HIGH-VOLUME MANUFACTURING DEAL FOR FAB2 AT THE 0.13UM
TECHNOLOGY GENERATION
Expects Sales of Thousands of Wafers-per-Month to First-Tier U.S. IDM which
could become one of Tower's top Three Customers
TECHNOLOGY TRANSFER TO COMMENCE NEXT QUARTER; PRODUCTION SHIPMENTS EXPECTED
TO BEGIN BY END OF 2008
MIGDAL HAEMEK, Israel - September 20, 2007 - Tower Semiconductor Ltd. (NASDAQ:
TSEM; TASE: TSEM), a pure-play independent specialty foundry today announced
that it has won a multi-million dollar per month manufacturing deal for its Fab2
at the 0.13-micron technology generation from a first-tier, U.S. integrated
device manufacturer (IDM). Under this deal, technology will be transferred
during the coming several quarters after which Tower expects to manufacture
between five and eight thousand wafers-per-month, utilizing the new tools it is
purchasing from companies such as AMD and Intel, as was previously announced.
The high-volume production shipments are expected to commence towards the end of
2008. Following such production, Tower expects that the U.S. IDM could become
one of Tower's top three customers.
"We are pleased, and feel it quite an achievement, that an IDM of this size,
capability and reputation chose Tower to be it's foundry partner for a critical
and projected very large volume family of products," said Tower's CEO, Russell
Ellwanger. "We are excited that this product line will utilize our expanded
manufacturing capacity in the advanced 0.13-micron technology. We are in
advanced stages of closing the deals to acquire the additional tools needed to
increase our capacity in Fab2 to a level that will meet this demand."
About Tower Semiconductor Ltd.:
Tower Semiconductor Ltd. (Nasdaq: TSEM, TASE: TSEM) is an independent specialty
foundry that delivers customized solutions in a variety of advanced CMOS
technologies, including digital CMOS, mixed-signal and RF (radio frequency)
CMOS, CMOS image sensors, power management devices, and embedded non-volatile
memory solutions. Tower's customer orientation is complemented by its
uncompromising attention to quality and service. Its specialized processes and
engineering expertise provides highly flexible, customized manufacturing
solutions to fulfill the increasing variety of customer needs worldwide.
Offering two world-class manufacturing facilities with standard and specialized
process technologies ranging from 1.0- to 0.13-micron, Tower Semiconductor
provides exceptional design support and technical services to help customers
sustain long-term, reliable product performance, while delivering on-time and
on-budget results. More information can be found at http://www.towersemi.com.
Safe Harbor
This press release includes forward-looking statements, which are subject to
risks and uncertainties. Actual results may vary from those projected or implied
by such forward-looking statements. Potential risks and uncertainties include,
without limitation, risks and uncertainties associated with: (i) the completion
of the equipment installation, technology transfer and ramp-up of production in
Fab 2 and raising the funds therefor, (ii) the cyclical nature of the
semiconductor industry and the resulting periodic overcapacity, fluctuations in
operating results, future average selling price erosion that may be more severe
than our expectations, (iii) having sufficient funds to operate the company in
the short-term and the funding needs for its ramp-up plan, (iv) operating our
facilities at satisfactory utilization rates which is critical in order to
defray the high level of fixed costs associated with operating a foundry and
reduce our losses, (v) our ability to satisfy the covenants stipulated in our
credit facility agreement, as amended, (vi) our ability to capitalize on
increases in demand for foundry services, (vii) meeting the conditions to
receive Israeli government grants and tax benefits approved for Fab 2 and
obtaining the approval of the Israeli Investment Center for a new expansion
program, (viii) attracting additional customers, (ix) not receiving orders from
our wafer partners and customers, (x) failing to maintain and develop our
technology processes and services, (xi) competing effectively, (xii) our large
amount of debt and our ability to repay our short-term and long-term debt on a
timely basis, (xiii) achieving acceptable device yields, product performance and
delivery times, (xiv) the timely development, internal qualification and
customer acceptance of new processes and products, (xv) the entering into and
the consummation of agreements to purchase the equipment to increase Fab2
capacity and the timely installation thereof, (xvi) timely and successful
execution of the technology transfer project mentioned above, including the
customers' demand to grow to the quantities currently forecasted and (xvii) and
business interruption due to terror attacks, earthquakes, other acts of God and
the security situation in Israel.
A more complete discussion of risks and uncertainties that may affect the
accuracy of forward-looking statements included in this press release or which
may otherwise affect our business is included under the heading "Risk Factors"
in our most recent filings on Forms 20-F, F-3 and 6-K, as were filed with the
Securities and Exchange Commission and the Israel Securities Authority. Future
results may differ materially from those previously reported. We do not intend
to update, and expressly disclaim any obligation to update, the information
contained in this release.
Contacts:
Tower Semiconductor
Noit Levi, +972 4 604 7066
noitle@towersemi.com
or
Shelton Group Public Relations
Melissa Conger, +1 972-239-5119 ext 137
mconger@sheltongroup.com
or
Shelton Group Investor Relations
Ryan Bright, + 1 972-239-5119 ext 159
rbright@sheltongroup.com