ON Semi, Tower Semi begin multi-year collaboration

The multi-year, and potentially multi-million dollar collaboration project between the companies is aimed at applications in end markets such as automotive, computing, consumer and communications.

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 6/23/2008

To jointly develop and manufacture multiple lines of products and technologies for end market applications including automotive, computing, consumer and communications, Phoenix, Ariz.-based power IC provider ON Semiconductor said today it will work with Migdal Ha’emek-based specialty chip foundry Tower Semiconductor Ltd as a strategic supplier.

The companies said they will leverage each company’s core expertise in the development of new manufacturing technology platforms that will be manufactured in Tower’s Fab1 facility.

John Nelson, COO of ON Semi said that with its high-quality engineering support and manufacturing capabilities, Tower is a ideal to partner with, and ON views the partnership as a natural extension of its manufacturing capabilities.

“We are committed to expanding our collaboration, while improving our position in the market place, through Tower’s manufacturing capacity and innovative developments aimed at giving us a competitive edge,” he added, in a statement.

Dr. Itzhak Edrei, executive senior VP for worldwide product lines and sales at Tower noted that the added layer of collaboration between the companies should increase Tower’s manufacturing volume of ON Semi products."

In other recent Tower news, the company last month cut 170 jobs as part of its ongoing cost-reduction measures.

Also last month, Tower strengthened its analog-intensive mixed signal foundry service by acquiring Jazz Semiconductor.