TowerJazz revenues soar; eyes up Indian fab and $200m quarterly run-rate.
TowerJazz, the Israeli foundry, saw Q2 revenues increase 21% over Q2 2011 to $169m and revenues for H1 2012 grow 29% over H1 2011. EBITDA was $52m. Gross margin was 40%. It is projecting a 12-14% revenue increase for the first nine months of 2012.
Tower will not be hitting its target of a $200m quarterly run-rate in Q4 but “it’s a possibility in Q1,” said TowerJazz CFO Oren Shirazi
Tower is in the bidding to build a 30K wpm, 300mm in India. IBM would provide the technology for 45nm, 65nm and 90nm technology, Tower would operate the fab and the Indian company JP would partner Tower and be the dominant owner of the fab.
Tower estimates it would take three years to see wafers out from the Indian fab from when the bidding process closes which is expected to be at the end of this year.
Tower is cutting 280 jobs at the Japanese fab it bought from Micron for $40m. The cuts will save $30m a year in opex.