Tower Semiconductor has stated that both its production fabs have passed 90 percent utilization in the second quarter a feat not achieved in over four years. Fab 2, a 200mm facility is currently installing more tools to meet demand as the company now has around 55 customers.

"We are pleased to announce a second consecutive quarter of record sales, and continued positive EBITDA growth. Both Fab 1 and Fab 2 realized record shipments in Q2, at an average utilization greater than 90%, with approximately 50 new revenue products and a total customer base of approximately 55. The Fab 2 ramp plan is on track with the first tools in the process of being installed." said Russell Ellwanger, chief executive officer, Tower Semiconductor. "Although the State of Israel is facing a challenging situation, Tower continues with business as usual and is well positioned to meet its manufacturing and engineering commitments. We expect further record sales in the third quarter and are encouraged by the outlook for the balance of 2006 and beyond".

The company posted sequential record sales to $44.6 million US dollars in Q2 2006, though losses were $43.6 million. The company has not been profitable for 5 years.