An open term agreement will allow TowerJazz, an international developer of foundries, to consider purchase of Micron Technology’s wafer production unit that is located in Nishiwaki City, Hyogo, Japan.
The takeover will enhance TowerJazz’s existing internal production capacity, increase production by 60,000 wafers each month economically. The development will allow the company to address its growing blue chip customer base. The agreement will also allow TowerJazz to explore potential business possibilities in Japan.
The contract will allow TowerJazz to develop solutions for Micron at the site in Japan over a period of three years. It will also allow TowerJazz to develop nanoscale products measuring 95nm. TowerJazz will develop its core power control systems to address growing demands from its Korean consumers.
The final acquisition, which is still under consideration, will demand a $140 million investment from TowerJazz, including liabilities. It will also include retirement and other benefits to employees.
Source: http://towerjazz.com/