EXHIBIT 3
TOWER SEMICONDUCTOR SECURES FIRST VOLUME PRODUCTION ORDER FOR FAB 2 FROM
ALLIANCE SEMICONDUCTOR
MIGDAL HAEMEK, ISRAEL - APRIL 23, 2003 - Tower Semiconductor (NASDAQ: TSEM;
TASE: TSEM) has achieved a significant objective by securing the first volume
production order for its new manufacturing facility, Fab 2. Alliance
Semiconductor (NASDAQ: ALSC) placed a volume order for the manufacture of its
4-Mb, asynchronous SRAM using Tower's 0.18-micron process technology. Tower
expects to begin commercial shipments of the product in mid-2003.
Tower's new state-of-the-art wafer fab is dedicated to the production of
semiconductor devices with 0.18-micron and lower geometries. Alliance, one of
Tower's four wafer partners, invested approximately $75 million in Tower for Fab
2's construction.
"This order marks a key milestone for Fab 2 and for Tower. By starting volume
production we are on our way to filling our new fab's capacity, which is a vital
part of our global growth strategy," said Harold Blomquist, senior vice
president of Tower Semiconductor Ltd. and chief executive officer of Tower
Semiconductor USA. "As a major investor in Fab 2, Alliance has further
demonstrated its support in the future of Fab 2 by working closely with us on
this and other products."
A fabless semiconductor company, Alliance Semiconductor provides
high-performance memory, mixed signal and systems solutions products. Alliance's
Fast Async SRAM product, which was qualified in Tower's prototyping and
pre-production phases, is the first product Tower will manufacture for Alliance.
The product will be used with mainstream digital signal processors (DSPs) and
microcontrollers.
ABOUT ALLIANCE SEMICONDUCTOR
Alliance Semiconductor Corporation is a leading worldwide provider of memory,
mixed signal and system solutions for networking, wireless, consumer and
computing markets. Through these integrated business units, Alliance provides
leading OEMs with synchronous and fast asynchronous SRAMs and super low-power
and pseudo SRAMs, high-speed chip-to-chip interconnects based on HyperTransport
technology and mixed signal products for Electromagnetic Interference (EMI)
management. Alliance develops and manufactures its products through independent
manufacturing foundries using advanced CMOS process technologies with line
widths as narrow as 0.13-microns. Founded in 1985, Alliance is headquartered in
Santa Clara, California. Additional information is available on Alliance's Web
site at: http://www.alsc.com.
ABOUT TOWER SEMICONDUCTOR LTD.
Tower Semiconductor Ltd. is a pure-play independent wafer foundry established in
1993. The company manufactures integrated circuits with geometries ranging from
1.0 to 0.18 microns; it also provides complementary manufacturing services and
design support. In addition to digital CMOS process technology, Tower offers
advanced non-volatile memory solutions, mixed-signal and CMOS image-sensor
technologies. To provide world-class customer service, the company maintains two
manufacturing facilities: Fab 1 has process technologies from 1.0 to 0.35
microns and can produce up to 20,000 150mm wafers per month. Fab 2 features
0.18-micron and below process technologies, including foundry-standard
technology, and will offer full production capacity of 33,000 200mm wafers per
month. The Tower Web site is located at www.towersemi.com.
Safe Harbor
This press release includes forward-looking statements, which are subject to
risks and uncertainties. Actual results may vary from those projected or implied
by such forward-looking statements. Potential risks and uncertainties include,
without limitation, risks and uncertainties associated with (i) obtaining
required approvals of the shareholders of the Company and regulatory
authorities, to the amendment to the Fab 2 investment agreements, (ii) raising
$22 million before the end of 2003, which is a condition to our major
shareholders payment of the remaining portion of the fifth milestone, (iii)
conditions in the market for foundry manufacturing services and in the market
for semiconductor products generally, (iv) obtaining additional business from
new and existing customers, (v) obtaining additional financing for the Fab 2
project from wafer partners and/or equity partners and/or other sources, (vi)
any failure by Tower to raise additional funding by the deadlines set forth in
its agreement with its banks and/or a failure by Tower to reach an agreement
with its banks to extend the deadlines to raise additional financing in 2003
and/or failure by Tower to get the approval of its banks to the amendment to the
investment agreements, which would result in an event of default of Tower's loan
agreement, in which event the banks would have the right to call the loans and
exercise its liens against Tower's assets, (vii) a declaration of default by
Tower's wafer partners, financial investors and the Investment Center of the
State of Israel should Tower's banks call the loans, (viii) satisfaction of all
other conditions under the agreements with the Fab 2 equity and wafer partners,
the Israeli Investment Center and Tower's banks, (ix) completing the
construction of a new wafer manufacturing facility, (x) successful completion of
the development and/or transfer of advanced CMOS process technologies to be
utilized in Tower's existing facility and in Fab 2, (xi) market acceptance and
competitiveness of the products to be manufactured by Tower for customers using
these technologies, (xii) ramp-up of production at Fab 2 and (xiii) possible
loss of our exclusive foundry license with Saifun if we fail to meet certain
sales levels and other conditions.
A more complete discussion of risks and uncertainties that may affect the
accuracy of these statements, and Tower's business generally, is included in the
documents we file with the Securities and Exchange Commission.
# # #
PR Agency Contact Investor Relations Contact Corporate Contact
Julie Lass Sheldon Lutch Tamar Cohen
Loomis Group Fusion IR & Communications Tower Semiconductor Ltd.
+1 (713) 526 3737 +1 (212) 268 1816 +972-4650-6998
lassj@loomisgroup.com sheldon@fusionir.com pr@towersemi.com