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Tower taps AMD & Intel for used 200mm equipment |
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Sep 10, 2007 at 09:25 AM |
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 Tower Semiconductor has said that it has secured used 200mm processing equipment from AMD and Intel amongst other non-specified chip manufacturers as part of its cost-effective strategy to ramp Fab2 beyond the current 24,000 wafer starts per month capacity.
"Fab2 continues to run at a utilization rate of higher than 90%, with customer forecasted demand exceeding the current capacity level", said Russell Ellwanger, Chief Executive Officer of Tower Semiconductor. “We have placed purchase orders for a portion of the manufacturing tools and are in the final stages of negotiation with several equipment suppliers for the complete current set of tools for this stage of the expansion plan. The tools are predominantly used equipment originating from certain integrated device manufacturers (IDMs), such as AMD and Intel 200 millimeter copper manufacturing facilities. This enables us to purchase the manufacturing tools at low prices, as compared to purchasing them from the original equipment manufacturers. We expect the equipment to roll into Fab2 during the coming few quarters, with the first tools arriving next month".
The news came on the back of Tower’s announcing that it has secured $60 million credit line from its banks and majority shareholder to carry out the further ramp of Fab 2.
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