FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
For the month of August 2007 No. 4
TOWER SEMICONDUCTOR LTD.
(Translation of registrant's name into English)
RAMAT GAVRIEL INDUSTRIAL PARK
P.O. BOX 619, MIGDAL HAEMEK, ISRAEL 23105
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [_]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [_] No [X]
On August 20, 2007, Tower Semiconductor Announces Supply Chain Efficiency
Plan; Expects Cost Reduction of Approximately $15 Million through the Coming
Three Years, attached hereto is a copy of the press release.
This Form 6-K is being incorporated by reference into all effective
registration statements filed by us under the Securities Act of 1933.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TOWER SEMICONDUCTOR LTD.
Date: August 20, 2007 By: /s/ Nati Somekh Gilboa
--------------------------
Nati Somekh Gilboa
Corporate Secretary
TOWER SEMICONDUCTOR ANNOUNCES SUPPLY
CHAIN EFFICIENCY PLAN; EXPECTS COST REDUCTION OF APPROXIMATELY
$15 MILLION THROUGH THE COMING THREE YEARS
SIGNED A SUB-CONTRACTING INVENTORY MANAGEMENT AGREEMENT WITH
EMA INVENTORY LIFECYCLE SOLUTIONS
Migdal Haemek, Israel - August 20, 2007 - Tower Semiconductor Ltd. (NASDAQ:
TSEM; TASE: TSEM), an independent specialty foundry, announced today that EMA
Inventory Lifecycle Solutions, a joint partnership of Exel MPL and AVBA Hi-Tech
Services, was chosen to integrate a variety of advanced capabilities in
logistics, engineering and support services, to facilitate comprehensive
solutions for inventory management of spare parts for Tower's manufacturing
tools.
The services provided by EMA will include: onsite spare parts management
services, planning, procurement, logistics, repair, transport and delivery. The
significant achievement of this transaction is the fact that the vendor
purchases and owns the spare part inventory and assumes responsibility for the
entire supply chain, including the spare parts' availability. Therefore, the
supplier and the customer share the risks and advantages of managing efficient
inventory.
For Tower, this transaction is expected to produce several advantages: (i) cost
reduction; (ii) improvement of spare parts' availability which may result in
increased manufacturing capacity; (iii) reduction of Tower's inventory level.
EMA has vast experience and success in these areas having managed inventory for
a leading global semiconductors manufacturing company and other companies from
the microelectronics industry.
"EMA offers a complete suite of inventory management solutions tailored for
semiconductor companies", said Shimon Dahan, Tower's VP of corporate services.
"We already see cost reduction and during the coming three years we expect to
achieve accumulated savings of approximately $15 million on Tower's spare parts
and other costs".
"Working with Tower presents an excellent opportunity for EMA to diversify our
customer's base and services offering", said Avi Gilboa, EMA's CEO. "We are
proud of Tower's decision to manage its spare parts inventory through EMA".
ABOUT TOWER SEMICONDUCTOR LTD.
Tower Semiconductor Ltd. (Nasdaq: TSEM, TASE: TSEM) is an independent specialty
foundry that delivers customized solutions in a variety of advanced CMOS
technologies, including digital CMOS, mixed-signal and RF (radio frequency)
CMOS, CMOS image sensors, power management devices, and embedded non-volatile
memory solutions. Tower's customer orientation is complemented by its
uncompromising attention to quality and service. Its specialized processes and
engineering expertise provides highly flexible, customized manufacturing
solutions to fulfill the increasing variety of customer needs worldwide.
Offering two world-class manufacturing facilities with standard and specialized
process technologies ranging from 1.0- to 0.13-micron, Tower Semiconductor
provides exceptional design support and technical services to help customers
sustain long-term, reliable product performance, while delivering on-time and
on-budget results. More information can be found at http://www.towersemi.com.
ABOUT EMA INVENTORY LIFECYCLE SOLUTIONS
For information please visit EMA Inventory Lifecycle Solutions website, located
at http://www.emagls.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. A complete discussion of risks and
uncertainties that may affect the accuracy of forward-looking statements
included in this press release or which may otherwise affect our business is
included under the heading "Risk Factors" in our most recent Annual Report on
Form 20-F, Forms F-1, F-3 and 6-K, as were filed with the Securities and
Exchange Commission and the Israel Securities Authority. We do not intend to
update, and expressly disclaim any obligation to update, the information
contained in this release.
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MEDIA CONTACTS:
Shelton Group, on behalf of Tower Semiconductor
Melissa Conger, 972-239-5119 ext. 137
mconger@sheltongroup.com
Tower Semiconductor USA:
Michael Axelrod, +1 408 330 6871
pr@towersemi.com