Tower Semiconductor, Nuvoton Technology Agree To Strategic Restructuring

(RTTNews) - Tower Semiconductor Ltd. (TSEM), a semiconductor foundry, along with Nuvoton Technology Corp, a semiconductor solutions provider, Wednesday, announced that Nuvoton Technology Corp Japan (NTCJ), a subsidiary of Nuvoton, together with Tower and Tower Partners Semiconductor Co., Ltd. (TPSCo), have agreed to a strategic restructuring of TPSCos business operations.

TPSCo is a wafer processing and assembly services unit operating a 12-inch fabrication facility and an 8-inch fabrication facility, in which Tower holds a 51 percent equity interest and NTCJ holds the remaining 49 percent equity interest.

Upon transaction close, Tower will gain full ownership and operational control of TPSCos 12-inch fab and foundry business, whereas the 8-inch fab and foundry business will remain within TPSCo, and become a subsidiary of NTCJ for a consideration of $25 million payment by NTCJ to Tower on the closing date.

This strategic restructuring is intended to better align each company's assets with its respective long term business strategy, enhance operational focus, and strengthen global competitiveness in response to evolving market and customer requirements, the semiconductor foundries said in a statement.

The transaction is expected to close on April 1.

Currently, TSEM shares are trading at $183.74, up 1.61% on the Nasdaq.