Tower Semiconductor wins manufacturing deal
Shares of Tower Semiconductor Ltd. (Nasdaq: TSEM) are rallying in pre-market trading after the manufacturer of semiconductor integrated circuits on silicon wafers reported that it won a multi-million dollar per month manufacturing deal for its Fab2 at the 0.13-micron technology generation from a U.S. integrated device manufacturer.
Under the terms of the deal, the Israeli company said it expects to manufacture between 5,000 and 8,000 wafers per month, using new tools it is purchasing from companies such as AMD and Intel, as the company previously announced.
Production shipments are expected to begin toward the end of 2008. Tower said it expects that the U.S. device manufacturer could become one of its top three customers.
Shares of Tower (TSEM) rose $0.18, or 12%, to $1.68 in pre-market trading.
