TowerJazz Awarded Five-Year Multi-Million Dollar Foundry Improvement and Sustainability Program in Partnership with US Air

  TowerJazz Awarded Five-Year Multi-Million Dollar Foundry Improvement and
  Sustainability Program in Partnership with US Air Force

 Technology Investment Agreement focused on support of Air Force’s Large Die
     ROIC Program and continued improvements for TowerJazz’s US facility

Business Wire

NEWPORT BEACH, Calif. -- January 29, 2014

TowerJazz has announced the award and program kick-off of a Technology
Investment Agreement (TIA) with the United States Air Force/Air Force Research
Laboratory (USAF/AFRL) of the Wright-Paterson Air Force Base. The Defense
Production Act Title III program is a five-year multi-million dollar Large
Format Read Out Integrated Circuit (ROIC) Foundry Improvement and
Sustainability program focused on continued technology and manufacturing
leadership and improvements for TowerJazz’s Newport Beach, CA wafer
fabrication facility in support of TowerJazz's overall aerospace and defense
offering and customers. TowerJazz is a leading manufacturer of state-of-the
art ROICs which are key elements in many commercial and military detectors,
sensors, and imaging systems spanning air, land, sea and space. This award
will enhance TowerJazz's ability to support production requirements of
increasingly complex future ROIC designs.

TowerJazz continues to expand CMOS production for ROICs used in imaging arrays
in both un-cooled and cooled applications in support of increased demand
spanning 0.5-micron to 0.18-micron technology nodes. The five year program
with the Title III Office will focus on the most advanced 0.18-micron CMOS
process based large-die, stitched ROICs. In the 0.18-micron node, TowerJazz is
making available to its ROIC customers its 1.8V/3.3V or 1.8V/5V dual gate
oxide processes in a variety of substrate options such as bulk, epi and thick
film SOI and with a wide range of desirable mixed-signal features from its
commercial technology including high density linear MIM capacitors, precision
resistors with triple well isolation and bipolar elements. TowerJazz also
provides cryogenic models for its devices ensuring a high degree of confidence
in the first time success of cooled ROIC designs.

TowerJazz operates a full on-shore facility with ITAR mask suppliers
continuing a tradition started over 20 years ago when this facility was the
primary semiconductor manufacturing site for Rockwell International. In
addition to supporting the manufacture of ITAR designs, TowerJazz is now also
able to offer Trusted Solutions through Jazz Semiconductor Trusted Foundry.

“TowerJazz is extremely excited to have this opportunity to partner with
Wright-Patterson AFB in support of the Air Force’s Large Die ROIC foundry
improvement and sustainability program. This program will leverage past and
ongoing accomplishments at TowerJazz in support of on-shore fabrication
critical to our National Defense and assist in enabling the next generation of
essential Aerospace and Defense applications,” said Mike Scott, Director, USA
Aerospace and Defense Division, TowerJazz.

About TowerJazz

Tower Semiconductor Ltd. (NASDAQ:TSEM, TASE:TSEM), its fully owned U.S.
subsidiary Jazz Semiconductor, Inc. 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, offering a broad range of customizable process technologies
including: SiGe, BiCMOS, Mixed-Signal/CMOS, RFCMOS, CMOS Image Sensor, Power
Management (BCD), and MEMS capabilities. TowerJazz also provides a world-class
design enablement platform that enables a quick and accurate design cycle. In
addition, TowerJazz provides (TOPS) Transfer Optimization and development
Process Services to IDMs and fabless companies that need to expand capacity.
TowerJazz offers multi-fab sourcing with two manufacturing facilities in
Israel, one in the U.S., and one in Japan. For more information, please visit

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.


Company/Media in US:
Lauri Julian, +1-949-435-8181
Investor Relations:
Noit Levi, +972-4-604-7066
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