Specialty semiconductor foundry TowerJazz said Monday (Dec. 23) it would create a joint venture (JV) to manufacture chips for Japanese consumer electronics vendor Panasonic using Panasonic's three chip fabs in Japan.
Under the terms of the deal, Panasonic will transfer its semiconductor wafer manufacturing processes, capacity and 8- and 12-inch tools to the JV, TowerJazz said. The JV will also have the option of expanding operations in the fabs, TowerJazz said.
TowerJazz said it would get 51 percent of the shares of the JV under the terms of the deal. Panasonic has committed to buy chips made by the JV for a period of at least five years, TowerJazz said.
The Panasonic fabs are in the Hokuriku region of Japan, located in the northwest of Japan's main island, Honshu.