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

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.