TowerJazz has signed an agreement with Panasonic to create a joint venture to manufacture Panasonic's products, according to the companies.

　　Within the scope of the JV, Panasonic will transfer its semiconductor manufacturing process and capacity tools of 8- and 12-inch wafers at its Hokuriku factories (Uozu, Tonami and Arai) to the JV, committing to acquire its products from the JV for a long term period of at least five years of volume production, and will transfer to TowerJazz 51% of the shares of this JV. Meanwhile, following this transaction, TowerJazz will rationalize its Japanese business, which may include fab consolidations between TowerJazz's Nishiwaki facility and the JV's facilities.

　　As consideration for its 51% equity holding in the JV, after closing of this transaction, TowerJazz will issue to Panasonic ordinary shares in the value of approximately US$8 million, to be calculated based on TowerJazz average shares value during March 2014. As a result of holding its ordinary shares, Panasonic will become a minority stakeholder in TowerJazz.

　　The JV will continue the production of Panasonic's semiconductor processes as Panasonic's subcontractor, as well as seek to expand operations by leveraging TowerJazz's customers and businesses, the companies said in a statement.

　　The JV is also expected to increase TowerJazz's technology offerings by providing multiple additional specialty flows, including Panasonic's specialty flows such as High Definition FSI - a CIS (CMOS image sensor) benchmark technology for high quantum efficiency, low dark current CIS technology, and high voltage SOI (silicon-on-insulator) based power management technologies, the companies indicated. This technology allows excellent images in low light conditions with no bright pixels in the image, and is suited for high end DSLR (digital single lens reflex) type cameras.