Specialty foundry Tower Semiconductor's merger with Jazz Semiconductor Inc. of the US over a year ago, received further vindication today, as the merged company TowerJazz Ltd. (Nasdaq: TSEM; TASE: TSEM) today announced a deal with European firm Phasor Solutions Inc. to supply its process for the manufacture of Phasor's transceiver chipset. The size of the deal is not large, with potential revenue of a few million dollars a year.
Phasor, a developer of high performance phased array antennas for satellite communications and radar applications, selected TowerJazz’s high performance SiGe BiCMOS process to manufacture its innovative transceiver chipset for mobile broadband service on moving platforms such as trains, manned and unmanned airplanes, and military vehicles. Phasor’s initial target is wireless Internet access on trains, an estimated available market of about 625 million users a year worldwide according to BWCS, a London-based firm that studies the telecommunications industry.
TowerJazz will reportedly begin development of the new process during 2010, and revenue will amount to $500,000. Production will begin in 2011, and revenue will rise to $1.5 million. Full-scale production will be in 2012-13, generating $6-8 million revenue a year for TowerJazz.
TowerJazz's share rose 4.1% in early trading on Nasdaq today to $1.04, giving a market cap of $192 million. The share rose 2% on the TASE today to NIS 3.88.
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2009
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