EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1 exhibit_99-1.htm
Exhibit 99.1
 
 
The Road to be
#1 Specialty Foundry
Mr. Russell Ellwanger, CEO
January 2011
1
13th Annual Needham Growth Conference
 
 
 
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 number of risks,
uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements.
All statements other than statements of historical fact are statements that could be deemed forward-looking statements. For example,
statements of expected synergies from Tower’s merger with Jazz, customer benefits, costs savings, financial guidance, industry ranking,
execution of integration plans and management and organizational structure are all forward-looking statements. The potential risks and
uncertainties include, among others, that expected customer benefits, synergies and costs savings will not be achieved or that the
companies are unable to successfully execute their integration strategies, as well as other risks applicable to both Tower and Jazz’s
business described in the reports filed by Tower and Jazz with the Securities and Exchange Commission (the “SEC”) and, in the case of
Tower, the Israel Securities Authority. These filings identify and address other important factors that could cause Tower and Jazz's
respective financial and operational results to differ materially from those contained in the forward-looking statements set forth in this
document. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Tower or Jazz. Tower and
Jazz are providing this information as of the date of this presentation and neither Tower nor Jazz undertakes any obligation to update any
forward-looking statements contained in this document as a result of new information, future events or otherwise.
A more complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this
presentation or which may otherwise affect Tower or Jazz’s business is included under the heading "Risk Factors" in Tower’s most recent
filings on Forms 20-F, F-4, F-3 and 6-K, as were filed with 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. Actual results may differ materially from those projected or implied by such forward-
looking statements. Tower and Jazz do not intend to update, and expressly disclaim any obligation to update, the information contained in
this release.
2
 
 
 
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
3
 
 
 
Annual Revenues 2005-2010
* 2010 revenue is based on company’s announced target
4
 
 
 
Two Dimensional World of Silicon Development
22nm
32nm
45nm
65nm
90nm
130nm
180nm
Years
5
Being a 2nd or 3rd source :
 • May help Fab utilizization
 BUT:
 • Makes one a non value add,
  low margin, “bottom feeder”
 
 
 
More than Moore…
Special Analog Device Enrichment
Interacting with people
and environment:
Non-digital content System-in-Package (SiP)
6
 
 
 
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!
7
 
 
 
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
In Production
Future
Development
In Production
Future
Development
Interacting with people
and environment:
Non-digital content System-in-Package (SiP)
8
 
 
 
Specialty Technology
Revenue ($M)
Specialty
9
 
 
 
Revenue and EBITDA 2005-2010
10
 
 
 
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 Haemek, Israel
§ 8” Fab and 6” Fab
Newport Beach, CA
§ 8” Fab
Hsinchu, Taiwan
§ Sales Office
Munich
§ Sales Office
TowerJazz Global Footprint
11
 
 
 
Foundry Revenue 2005-6-7-8-9
Source: The McLean Report; iSupply; IC Insight; Companies Report
12
 
 
 
Foundry Revenue Growth Y/Y
Source: The McLean Report, 2008 Edition; iSupply 2009; Companies Report
13
 
 
 
Foundry Revenue Growth Y/Y
Source: The McLean Report, 2008 Edition; iSupply 2009; Companies Report
14
 
 
 
From Design Win to Production
Pre-sale
Exploration
 
Quote
Production
Development
R&D
Prototype
Qual
Metal
fix
Design
Characterization
6-12 months
2-5 months
3-6 months
Design-win
15
 
 
 
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
16
§ 2010 Q1-Q3: >350 design-wins
 
 
 
TowerJazz Market Momentum
17
 
 
 
• 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
 
 
 
19
∞
* 2010 EBITDA is based on company’s announced targets
 
 
 
Diversified Customer Base
20
 
 
 
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
21
 
 
 
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 Jazz EV by 3X to $480M
 – $200M pro-forma cash to enable M&A deals
22
 
 
 
23
* 2010 revenue and EBITDA are based on company’s announced targets
Revenue-EBITDA
Design-wins
 
 
 
www.towerjazz.com