March 11, 2002 – Migdal Haemek, Israel – Tower Semiconductor has successfully produced the first 0.18-micron wafer lot from its Fab 2 pilot line with higher-than-expected yields.

This production, which was completed on schedule, validates both the equipment and technology transfer from Toshiba Corp. and enables Tower to proceed with its prototyping activities in preparation for manufacturing 0.18-micron products for its wafer partners and other new customers, the foundry said.

“The successful manufacturing of this wafer lot on our Fab 2 pilot line demonstrates our new fab’s ability to produce customer prototypes, efficiently and on time,” stated Tower co-CEO Yoav Nissan-Cohen. “This operational pilot line will, in fact, be an integral part of the final Fab 2 tool set and puts us one step closer to Fab 2’s opening day, which we anticipate later this year.”

Tower broke ground on Fab 2 13 months ago. Most recently, the company completed the installation of the first tool set on the Fab 2 pilot line in January. In the weeks following, Tower has tested and produced engineering prototypes on the line, using Tower and Toshiba’s front-end and back-end technology. Tower now offers customers prototyping and intellectual property validation utilizing its TowerShuttle service. This service enables multiple customers to use the same mask-set in order to reduce the prototyping cost.