Tower Semiconductor Ltd. · NASDAQ:TSEM
Tower Semiconductor — 13th Annual Needham Growth Conference 2011
24 slides from Tower Semiconductor's conference presentation, Jan 13, 2011
Slide 1: The Road to be #1 Specialty Foundry
1 The Road to be #1 Specialty Foundry Mr. Russell Ellwanger, CEO January 2011 13th Annual Needham Growth Conference
Slide 2: Disclaimers
2 Disclaimers Forward Looking Statements This presentation contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a
Slide 3: What do we do?
3 Internal Fab Assembly & Test Packaged Device What do we do? IDM Design Center Foundry Fab TowerJazz WW Design Center Digital “Moore’s law” foundries More than Moore
Slide 4: Annual Revenues 2005-2010
4 Annual Revenues 2005-2010 * 2010 revenue is based on company’s announced target
Slide 5: Two Dimensional World of Silicon Development
5 Two Dimensional World of Silicon Development 22nm 32nm 45nm 65nm 90nm 130nm 180nm Years Being a 2 nd or 3 rd source : • May help Fab utilizization BUT: • Makes one a non value add, low margin, “bottom feeder”
Slide 6: More than Moore…
6 More than Moore… Special Analog Device Enrichment Interacting with people and environment: Non-digital content System-in-Package (SiP)
Slide 7: More than Moore…
7 More than Moore… Special Analog Device Enrichment Interacting with people and environment: Non-digital content System-in-Package (SiP) A double time scale - Keeping a mature Fab young!
Slide 8: More than Moore…
In Production Future Development In Production Future Development 8 More than Moore… Special Analog Device Enrichment 90nm 0.13um 0.18um 0.25um 0.35um 0.5um MS/ RF CIS Power Mngt MEMS Time Interacting with people and environment: Non-digital content System-in-Package (SiP)
Slide 9: Specialty Technology
9 Specialty Technology Revenue ($M) Specialty
Slide 10: Revenue and EBITDA 2005-2010
10 Revenue and EBITDA 2005-2010
Slide 11: TowerJazz Global Footprint
11 240K WPY ~70K WPY 600K WPY Total 8” Equivalent Capacity of ~900K WPY expanding to ~1.2M WPY Shanghai, China § HHNEC: 10% Ownership § ASMC: Supply Agreement Tokyo, Japan § Sales Reps Seoul, Korea § Sales and Support Office France § Sales Reps Santa Clara, CA § Sales and Support Office Migdal Haeme
Slide 12: Foundry Revenue 2005-6-7-8-9
12 Foundry Revenue 2005-6-7-8-9 Source: The McLean Report; iSupply; IC Insight; Companies Report
Slide 13: Foundry Revenue Growth Y/Y
13 Foundry Revenue Growth Y/Y Source: The McLean Report, 2008 Edition; iSupply 2009; Companies Report
Slide 14: Foundry Revenue Growth Y/Y
14 Foundry Revenue Growth Y/Y Source: The McLean Report, 2008 Edition; iSupply 2009; Companies Report
Slide 15: From Design Win to Production
Exploration Quote Production Development R&D Prototype Qual Metal fix Design Characterization Design-win 15 From Design Win to Production Pre-sale 6-12 months 2-5 months 3-6 months
Slide 16: Design-win Momentum
16 Design-win Momentum § 2009: >300 design-wins § Advanced RF: 86 § Image Sensors: 44 § Power Management: 48 § A&D: 58 § TOPS: 30 § Core CMOS: 42 Specialty: 86% of total design-wins § 2010 Q1-Q3: >350 design-wins
Slide 17: TowerJazz Market Momentum
17 TowerJazz Market Momentum
Slide 18: Design Enablement and Process Engineering Capabilities
• Design Enablement: PDK, Accurate Models, Special IP, Custom Design, Easy porting • Process and Device Engineering Capabilities HPA/RF CMOS TOPS-IDM Corporate Business and Applications Power CIS
Slide 19: EBITDA 2010 based on announced targets
19 ∞ * 2010 EBITDA is based on company’s announced targets
Slide 20: Diversified Customer Base
20 Diversified Customer Base
Slide 21: 2010-2011 Semiconductor Market growth Forecasts
21 2010-2011 Semiconductor Market growth Forecasts TowerJazz to surpassed industry’s growth at 2.2X 2011 vs. 2010: TowerJazz targets to continue to outpace the industry Average: ~32% Average: ~6.5% Source: IC Insights, McClean Report 2010
Slide 22: Summary
22 Summary § 2010 momentum: – On target to exceed $500 million annual revenues – Record design-wins for future growth – Highest growth rate foundry over the past 5 years – $400M debt restructured § 2011 & beyond: – Strong and growing sales funnel – We know how to make merger successful § Enhanced Ja
Slide 23: Revenue-EBITDA and Design-wins
23 * 2010 revenue and EBITDA are based on company’s announced targets Revenue-EBITDA Design-wins
Slide 24: www.towerjazz.com
www.towerjazz.com
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