TowerJazz Gaining Sizeable Share of Multi-Billion Dollar Front-End Module (FEM) Market; Silicon Radio Platform Replacing GaAs

  TowerJazz Gaining Sizeable Share of Multi-Billion Dollar Front-End Module
  (FEM) Market; Silicon Radio Platform Replacing GaAs

Customer engagements with over 50 design wins; TowerJazz poised to manufacture
       major portion of devices serving multi-billion dollar FEM market

       Handset FEM market is forecast to double to $10 Billion by 2017

Business Wire

MIGDAL HAEMEK, Israel & NEWPORT BEACH, Calif. -- March 11, 2013

TowerJazz, the global specialty foundry leader, today announced significant
customer engagements and market share gain in the fast growing Front-End
Module (FEM) market, providing its Silicon Radio Platform (SRP) for
smartphones and other mobile systems. TowerJazz’s SRP allows integration of
the radio in mobile devices including components such as antenna switches,
antenna tuners, diversity switches, controllers, low-noise-amplifiers (LNAs)
and power amplifiers (PAs) eliminating the need for expensive discrete GaAs
devices. The SRP includes a state of the art RF SOI technology and a SiGe PA
technology together with 0.18um RF CMOS for integration of control and MIPI
(Mobile Industry Processor Interface) interface functions.

TowerJazz’s latest RF SOI technology offers the industry’s best figure of
merit for antenna switch and antenna tuning applications with Ron-Coff of only
217fs. The technology is quickly replacing GaAs implementations and has
already been adopted by multiple customers worldwide with over 50 separate
designs taped-in with initial designs ramping to production.

TowerJazz’s Silicon Germanium (SiGe) PA process is built in 0.18um technology
to enable efficient integration of power amplifier, controller, and MIPI
interface and also includes a through-silicon-via to deliver performance
comparable to that of GaAs at only 40% of the cost while enabling new tunable
features and affording levels of integration not otherwise possible.

The economic and performance driven move from GaAs technologies to Si and SiGe
technologies is expected to more than triple the portion of the FEM market
available to TowerJazz over the next several years, and TowerJazz is well
poised to manufacture a major portion of the devices that will serve this fast
growing, multi-billion dollar market. According to a 2012 report by Mobile
Experts, LLC, the handset front-end market is expected to double to $10
billion and the number of RF paths is expected to grow to 20 billion by 2017.
The report further indicates that multi-mode, multi-band handsets and MIMO
(multiple-input and multiple-output) will drive staggering growth in the
number of RF components shipped for mobile devices.

Several drivers are contributing to the growth in the FEM market including:
Connectivity everywhere – 802.11a/b/g/n/ac, NFC, GPS, Bluetooth, ZigBee, HSPA+
and LTE; the expanding footprint/content in mobile platforms; and the
emergence of other analog markets – smart energy, power management, emerging
automotive, and others. TowerJazz is addressing these markets and further
recognizing three megatrends: (1) Green Everything, (2) Wireless Everywhere,
and (3) Smart Everything which are transforming the consumer electronics
industry as well as our everyday lives.

“These megatrends, coupled with the slowing of Moore’s law, will create even
more opportunities for specialty technologies such as those provided by
TowerJazz: analog, RF, SiGe, power, MEMS, and CMOS image sensors to offer even
more differentiation and create opportunities for system level optimization of
performance,” said Russell Ellwanger, TowerJazz CEO. “By mastering both
digital and analog technologies, TowerJazz is in a unique position to ride
these trends successfully and grow more rapidly in the marketplace, as being
evidenced by our FEM market leadership.”

TowerJazz offers the most complete portfolio of specialty process technologies
combined with its world class design environment, providing its customers with
the tools, technology, support and flexibility needed to create differentiated
products for their specific mobile applications. TowerJazz provides multiple
platforms for a variety of applications: RF CMOS for controllers, SOI for
switch and antenna tuning, SiGe for WLAN and cellular PAs, IPD (Integrated
Passive Device) for high performance passives for signal conditioning, and BCD
(Bipolar-CMOS-DMOS) for use in complex power management chips. TowerJazz's
MEMS capabilities provide a unique tool set and foundry model to enable strong
partnerships in these technologies. TowerJazz’s design enablement offers PDKs,
modeling, and tools for first time silicon success and quick time to revenue;
mission critical for the fast moving cellular market.

About TowerJazz
Tower Semiconductor Ltd. (NASDAQ: TSEM)(TASE: TSEM), its fully owned U.S.
subsidiary Jazz Semiconductor Ltd., and its fully owned Japanese subsidiary
TowerJazz Japan, Ltd., operate collectively under the brand name TowerJazz,
the global specialty foundry leader. TowerJazz manufactures integrated
circuits with geometries ranging from 1.0 to 0.13-micron, offering a broad
range of customizable process technologies including: SiGe, BiCMOS,
Mixed-Signal and RFCMOS, CMOS Image Sensor, Power Management (BCD), and
Non-Volatile Memory (NVM) as well as CMOS and MEMS capabilities. TowerJazz
also offers a world-class design enablement platform that complements its
sophisticated technology and enables a quick and accurate design cycle. In
addition, TowerJazz provides (TOPS) Technology Optimization Process Services
to IDMs as well as fabless companies that need to expand capacity, or progress
from an R&D line to a production line. To provide multi-fab sourcing,
TowerJazz maintains two manufacturing facilities in Israel, one in the U.S.,
and one in Japan with additional capacity available in China through
manufacturing partnerships. For more information, please visit
www.towerjazz.com.

Safe Harbor Regarding Forward-Looking Statements
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 TowerJazz’s
business is included under the heading "Risk Factors" in Tower’s most recent
filings on Forms 20-F, F-3, F-4 and 6-K, as were filed with the Securities and
Exchange Commission (the “SEC”) and the Israel Securities Authority and Jazz’s
most recent filings on Forms 10-K and 10-Q, as were filed with the SEC,
respectively. Tower and Jazz do not intend to update, and expressly disclaim
any obligation to update, the information contained in this release.

Contact:

TowerJazz
Company/Media Contact in US:
Lauri Julian, +1-949-435-8181
lauri.julian@towerjazz.com
or
Investor Relations Contact:
Noit Levi, +972-4-604-7066
noit.levi@towerjazz.com
 
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