Feeds

SanDisk to invest $75m in Israeli Tower

Chip fab company needs $1.5 billion

  • alert
  • submit to reddit

Flash memory specialist SanDisk is to pump $75 million into troubled Israeli chip maker and former NatSemi subsidiary Tower Semiconductor.

In exchange, SanDisk will gain take a ten per cent stake in Tower, with the option to take a further ten per cent, the Finacial Times reports.

Tower desperately needs money to fund a $1.5 billion reconstruction programme designed to replace the fabrication company's ageing 0.35 micron production lines with up-to-date 0.18 micron lines. The snag is, the new lines are projected to bring in just $700 million in revenues by 2005, leaving another $750 million to be found.

$10 million will come from Toshiba, which is also supplying the fabrication equipment. Tower said it hopes to raise $350 million from three strategic investors. Government financing and bank loans should, the company hopes, contribute $900 million.

SanDisk's scheme is to put around 20 per cent of its Flash production in Tower's direction. Currently, 70 per cent of its chips are made in Taiwan, the rest in Japan. ®

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.