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Friday, December 20, 2013
TowerJazz and Panasonic To Create Joint Venture for Manufacturing Panasonic Products

TowerJazz and Panasonic have signed of a definitive agreement to create a joint venture (JV) to manufacture Panasonic's products, using Panasonic's three semiconductor manufacturing facilities in Japan, as well as possible expansion of the current operations in those fabs.

Within the scope of the JV, Panasonic will transfer its semiconductor wafer manufacturing process and capacity tools of 8 inch and 12 inch at its Hokuriku factories (Uozu, Tonami and Arai) to the JV, commit to acquire its products from the JV for the volume production based on long term partnership between TowerJazz and Panasonic of at least five years, and will transfer to TowerJazz 51% of the shares of this JV.

In addition, in order to improve productivity of the compound semiconductor business and for the more efficient use of management resources, the laser diffusion processes at the company's Okayama Factory will be transferred to the Uozu District of the Hokuriku Factory. As a result, the company will end production at the Okayama Factory by the end of March, 2014. Employees of the Okayama factory are planned to be transferred and reassigned within the Panasonic Group, primarily within the Uozu District of the Hokuriku Factory.

Through the reforms, Panasonic's semiconductor business will start with the new structure in the fiscal year ending March 31, 2015. Panasonic says it will continue to expand the business globally and strive to develop products, focusing on the automotive and industrial fields.

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