Tower Semiconductor Ltd. and Applied
Materials, Inc. announced today that they have signed a five-year contract
to support all Applied Materials wafer processing systems at Tower's Fab 2 manufacturing
facility in Migdal Haemek, Israel. Through its Applied Performance Service program,
the most cost-effective and flexible service offering in the semiconductor industry,
Applied will provide Tower with committed system uptime at a low, predictable
cost that varies with factory loading - a critical benefit at a time of uncertain
market conditions.
“By leveraging Applied’s unmatched infrastructure, technology and
global expertise we expect to realize substantial cost and operating efficiencies,”
said Shimon Dahan, senior vice president, worldwide operations. “We’re
relying on Applied to maximize tool performance and optimize maintenance cost
at any load level, enabling us to focus on delivering world-class CMOS and mixed-signal
foundry services to our customers while remaining competitive even when demand
fluctuates.”
“Our Performance Service program is a powerful strategy for customers
to lower their overall costs and to align them with revenue by converting fixed
costs to variable expenses,” said Manfred Kerschbaum, senior vice president
and general manager of Applied Global Services. “Applied can help Tower
maintain its world class Fab metrics and operational effectiveness in a time
of lower fab loading and be ready to ramp smoothly when conditions improve.
This agreement is a testament to the value proposition that we offer and demonstrates
the growing momentum of our service business at customers worldwide.”
Under the agreement, Applied will service all the Applied Materials tools in
Tower’s Fab 2, including CVD*, PVD, etch, metrology, RTP, CMP and epitaxial
deposition systems. Using an unmatched range of engineering and logistics technologies
including Applied’s ExpertConnect™ remote diagnostic capability,
a team of local and internationally located Applied certified engineers will
provide around the clock support to perform preventive and corrective maintenance,
spare parts management, parts cleaning and coating, and analytical services.