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TowerJazz Completes Acquisition of Maxim’s Fab

February 02, 2016, anysilicon

TowerJazz, announced today that it completed its previously announced acquisition of an 8-inch wafer fabrication facility in San Antonio, Texas, United States from Maxim Integrated Products, Inc. (NASDAQ:MXIM). This acquisition will expand TowerJazz’s current worldwide manufacturing capacity, cost-effectively increasing its production by about 28,000 wafers per month. The availability of capacity is needed to serve the Company’s current and forecasted robust customer demand.

 

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As part of the transaction, the companies signed a long-term supply agreement of 15 years, under which TowerJazz will manufacture products for Maxim in the San Antonio facility, in quantities which will allow for a gradual ramp of third party products. As previously announced, Maxim received as consideration $40 million paid with approximately 3.3 million ordinary shares of TSEM, representing approximately 3% of company’s fully diluted share count. This was calculated based on the average closing price of TSEM in NASDAQ during the last 15 trading days.