Mark A. DeSorbo

MIGDAL HAEMEK, Israel– Tower Semiconductor Ltd. has selected M+W Zander AG (Stuttgart, Germany), Baran Ltd. (Israel), and its co-owned Israeli-based subsidiary Meissner-Baran, to construct Tower’s 200mm wafer fabrication plant, Fab 2, here as a turnkey project.

The $200 million project will be built in three phases and operate in deep sub-micron geometries and utilize advanced materials. With advanced CMOS technology from Toshiba, Fab 2 is expected to produce 200-mm wafers at maximum capacity of 33,000 wafers per month. First production at 0.18-micron geometry is expected in early 2002, with finer geometry to follow.

“This is an important milestone for Tower on its way to constructing its new Fab,” says Dr. Rafi Levin, Tower’s co-chief executive. “We are pleased to entrust this essential project in [M+W Zander’s] hands.”

Juergen Giessmann, chief executive of M+W Zander, shared the same sentiment, adding that Fab 2 is a milestone: “We are highly committed to serve Tower in its endeavor to quickly expand its capabilities and capacity in the fast growing semiconductor foundry segment.”

Recruiting for Fab 2, in Israel and abroad has already begun, and Tower is preparing extensive training program to bring the new hires to the necessary proficiency level. When completed, Fab-2 will employ approximately 3,000 people.

Tower recently announced the signing of a technology transfer agreement with Toshiba Corp., an investment agreement with SanDisk Corporation and expects to commence construction of the new Fab later this year, pending the approval of the Israeli government grant and securing the required financing.