Israel’s Tower Semiconductor, Shanghai’s Integrated Circuit Consortium in Alliance
Israel’s Tower Semiconductor (Nasdaq: TSEM; TASE: TSEM) said on Tuesday that it signed a memorandum of understanding with Shanghai ICC Technology & Industry Promotion Center to expand the distribution of Israeli complementary metal-oxide-semiconductors into the Chinese market.
The agreement is the latest in deals between the Jewish state and the Chinese, who have long sought deeper ties to Israeli technology firms, capitalizing on opportunities to bring Israeli ingenuity to bear on the growing economy. As well as state visits and plans for freer trade, the Chinese are also funding Israeli university projects and technology incubators in Israel. And while some groups continue to stage boycotts of Israeli products, some economists see eager Chinese buyers as a partial solution.
Shanghai ICC is a non-profit organization established by the Shanghai Municipality and the Chinese government to foster the country’s emerging integrated circuit companies, Israel’s Globes business daily reported. Tower will offer its mixed-signal CMOS and power technologies to provide technical and manufacturing capabilities to Shanghai ICC’s customers.
Tower already has a sales and technical office in Shanghai and the new partnership will provide access to Shanghai ICC’s technical support and introductions to the many emerging China IC companies and other potential customers.
“We are very pleased to partner with Shanghai ICC. This is an extremely good fit for both companies. The combination of their technical support with our specialty offerings will enable superior solutions for emerging China IC companies. We look forward to working closely with Shanghai ICC and their customers to help advance the China market,” Tower’s China country manager, Lei Qin, said.
Tower Semiconductor is Israel’s leader in the sector, controlling the $1.1 billion Fab 3 semi-conductor plant, completed in 2003. Tower also now owns the U.S. mixed signal semiconductor company Jazz Technologies, which it acquired in 2008, and a wafer fab belonging to Micron Technology in Japan, in 2011.
For 2014, the TowerJazz group expects, for the first time in it’s history, to generate more than $1 billion dollars in revenue.