Tower Semiconductor and Nuvoton Technology Corporation Japan Announce Strategic Business Restructuring of TPSCo

Under the framework agreement, upon closing of the transaction, Tower will gain full ownership and operational control of TPSCo’s 12‑inch fab and foundry business, while TPSCo’s 8‑inch fab and foundry business will remain within TPSCo, which will become a wholly owned subsidiary of NTCJ, for consideration of $25 million payment by NTCJ to Tower on the closing date. The companies will work collaboratively to ensure continuity without interruption of customer engagements, ongoing operations and development programs, as well as employee stability, across both facilities. In addition, each party will provide production services to the other party that currently fabricates products at the other party’s facility, for its customers, among other services to enable the business of each separate facility.