LONDON Foundry Tower Semiconductor Ltd. has said it has raised 140 million shekels (about $31 million) in an offering of rights to buy shares.
"We take great satisfaction with the reception of this offering. During this period of worldwide capital market instability, the financial community and the public in Israel gave a strong vote of confidence to Tower's financial trajectory and market roadmap," said Russell Ellwanger, chief executive officer of Tower Semiconductor (Migdal Haemek, Israel), in a statement. "This fundraising will enable us to further grow our Fab2 capacity, as previously announced, allowing us to better serve our customers and meet their expectations."
Tower said in May it needs to spend between about $100 million and $150 million to bring in semiconductor production equipment to Fab2 to get it to breakeven. That was according to Rafi Nave, chief technology officer of Tower, speaking as he attended the International Semiconductor Executives Forum organized by the Fabless Semiconductor Association and the Institution of Engineering and Technology, in Munich, Germany.
However, Tower’s ability to raise money locally could allow it to raise other monies with institutional and other investors and get close to the amounts of cash it needs.