TowerJazz, a global specialty foundry, and Panasonic Corporation today announced the signing of a definitive agreement to create a joint venture (JV) to manufacture Panasonic’s products, using Panasonic’s three semiconductor manufacturing facilities in Japan, as well as possible expansion of the current operations in those fabs, leveraging TowerJazz’s customers and businesses to capture out-of-group sales.

Within the scope of the JV, Panasonic will transfer its semiconductor wafer manufacturing process and capacity tools of 8 inch and 12 inch at its Hokuriku factories (Uozu, Tonami and Arai) to the JV, commit to acquire its products from the JV for the volume production based on long term partnership between TowerJazz and Panasonic of at least five years, and will transfer to TowerJazz 51% of the shares of this JV.

With aforementioned partnership, Tower Jazz and Panasonic will develop the JV to be a global leading specialty foundry leveraging TowerJazz’s world class design enablement platform and marketing advantages along with Panasonic’s well advanced technology and outstanding quality management capabilities.