TowerJazz to form chip-manufacturing JV with Panasonic

|About: Tower Semiconductor Ltd. (TSEM)|By:, SA News Editor

TowerJazz Semiconductor (TSEM) has agreed to create a joint venture with Panasonic to produce chips in a deal that will provide the Israeli company with "$400M of annual profitable revenue."

TowerJazz will own 51% of the JV and will issue Panasonic (PCRFF) with $8m worth of shares. The Japanese conglomerate will transfer three Japanese factories to the JV as part of a wider restructuring and will buy chips from the new entity for five years.

TowerJazz aims to now earn Q2 2014 revenue of $225M vs $133M a year earlier, become profitable by Q4 2014, and generate $1B of sales in 2015. (PR)