NEW YORK – Tower Semiconductor Ltd., a Israel-based specialist foundry chipmaker that trades as TowerJazz, has announced it has agreed to sell its 10 percent stake in Hua Hong Semiconductor Ltd. (HHSL) for $32 million in cash.
HHSL is the parent of foundry chipmaker Shanghai Hua Hong NEC Co. Ltd. (HHNEC) Tower originally acquired a 10 percent stake in HHNEC when it took over Jazz Semiconductor Inc. (Newport Beach, Calif.) in May 2008.
The stake is valued at $17 million on Tower's balance sheet, the company said.
"This transaction is another step in our business growth strategy, providing us with additional cash which may enable us to fund our continued growth initiatives. Our relationship and supply agreement with HHSL and its wholly owned subsidiary HHNEC are independent of an equity position," said Russell Ellwanger, CEO of Tower in a statement.
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