Tower Semiconductor, Panasonic in ‘Advanced’ Talks to Renew Joint Venture

Tower Semiconductor is in the “advanced stages of negotiations” with Panasonic to renew the four-year-old Tower Jazz Panasonic Semiconductor joint venture and supply agreement, which expire March 31, said Tower CEO Russell Ellwanger on a Monday earnings call. “It is obvious that the partnership will continue for multiple years with the next-stage contract extending for at least three years at production levels from Panasonic similar to the present run rate.” The Panasonic partnership “was and still is a great enabler for our technical and business development and growth,” said Ellwanger. He expects the renewed contract will include “some changes to the pricing table” because Panasonic won’t continue to cover all the fixed costs of the joint venture facilities, since Tower increasingly uses them for third-party production, he said. Tuesday, Panasonic didn’t comment.