Tower Semi (TSEM) Spikes Higher as C&S Tech Selects as Preferred Foundry in Korea
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Shares of Tower Semi (Nasdaq: TSEM) are rallying sharply this morning amid news earlier that the company has been selected by C&S Technology in Korea as its preferred foundry to manufacture its power automotive devices.
C&S Technology, the official automotive device supplier of multimedia solutions (audio and video systems) for Hyundai & Kia Motor Company, will now supply a power device to the automotive manufacturer. The device can integrate multiple ICs that are typically independent within the vehicle, resulting in a more cost-effective solution. As this IC is being designed for current models of automobiles, the volume ramp will be several years sooner. This customer engagement for Tower is one of several recently announced in Korea as momentum grows for its advanced Bipolar-CMOS-DMOS power management process.
This strong focus on utilizing the innovation and accumulated design capabilities prevalent in the Korean fabless community allows Korea to strengthen their competitiveness in both the automotive and IC markets, reducing its reliance on overseas suppliers. As more vehicles are being equipped with power, multimedia and network devices, the demand for automotive chips will increase. The percentage of electronic parts used in vehicles is expected to reach 40% by 2015 and over 30% will have semiconductors.
C&S Technology, the official automotive device supplier of multimedia solutions (audio and video systems) for Hyundai & Kia Motor Company, will now supply a power device to the automotive manufacturer. The device can integrate multiple ICs that are typically independent within the vehicle, resulting in a more cost-effective solution. As this IC is being designed for current models of automobiles, the volume ramp will be several years sooner. This customer engagement for Tower is one of several recently announced in Korea as momentum grows for its advanced Bipolar-CMOS-DMOS power management process.
This strong focus on utilizing the innovation and accumulated design capabilities prevalent in the Korean fabless community allows Korea to strengthen their competitiveness in both the automotive and IC markets, reducing its reliance on overseas suppliers. As more vehicles are being equipped with power, multimedia and network devices, the demand for automotive chips will increase. The percentage of electronic parts used in vehicles is expected to reach 40% by 2015 and over 30% will have semiconductors.
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