Give away medical masks when you place an order. learn more
Micron Technology plans to sell its 8-inch fab in Japan to specialty foundry company TowerJazz for about $140 million, the two companies announced.
TowerJazz, based in Israel, has signed a "non-binding term sheet" to purchase Micron's facility in Nishiwaki City, Japan, company officials reported. If the deal goes through, the facility would nearly double TowerJazz's manufacturing capacity, increasing its production by 60,000 wafers per month.
The facility can support geometries down to 95 nm and can be used to manufacture other products using TowerJazz process technologies. TowerJazz manufactures analog and power management ICs and image sensors.
Under the proposed agreement, TowerJazz would manufacture products for Micron at the facility for the next three years.
"We are excited with the opportunity to enter into a multi-year supply agreement with Micron and see this as the first step in a long-term partnership," said Russell Ellwanger, TowerJazz chief executive officer. He added that the acquisition of the fab in Japan would be a strategic move by TowerJazz to enter the Japanese market and strengthen its presence in the Asia-Pacific region.
The two companies are negotiating a definitive agreement for the proposed transaction.
Micron is based in Boise, Idaho.