Applied Materials wins second multi-year service contract at TowerJazz

SANTA CLARA, USA: Applied Materials Inc. has signed a multi-year service contract with TowerJazz, a global specialty foundry leader, to support Applied Materials equipment at its semiconductor manufacturing facility in Newport Beach, California.

This is the second service contract TowerJazz has awarded Applied; the first contract covers all Applied Materials systems at TowerJazz's Fab 2 in Migdal Haemek, Israel. Both service contracts are performance-based and deliver committed system uptime at a low, predictable cost that varies with factory loading - a key benefit that allows customers to control costs as demand fluctuates.

"Applied has proven that it can deliver significant cost savings and increased operating efficiencies as we have ramped production over the last several quarters," said Ephie Koltin, senior vice president of worldwide operations at TowerJazz. "Outsourcing equipment maintenance makes sound economic sense for us and allows us to concentrate on our core mission - fabricating our customers' complex CMOS, advanced analog, power management, image sensor, mixed-signal and MEMS devices with the reliability and quality required for today's mobile consumer electronics."

"Our adaptive support solutions save our customers money by enabling them to convert fixed costs to variable expenses that align with their revenue. This is the second agreement of this kind with TowerJazz which demonstrates our value proposition and reflects the growing momentum of our service business at customers worldwide," said Charlie Pappis, group vice president and general manager of Applied Global Services. "Our technical strength has allowed us to help TowerJazz maintain its world-class operational performance in the cyclic environment of the semiconductor business."

Under the agreement, Applied will service etch, metrology and inspection tools - among the most technically challenging steps of the manufacturing process. A team of local and internationally located Applied certified engineers will provide around the clock support using an unmatched range of engineering and logistics technologies, including Applied's ExpertConnect remote diagnostic capability.