Tower Semiconductor, Nuvoton announce restructuring of TPSCo

Tower Semiconductor (TSEM) announced that Nuvoton Technology Corporation Japan, or NTCJ, a wholly owned subsidiary of Nuvoton, together with Tower and Tower Partners Semiconductor, have entered into a framework agreement to implement a strategic restructuring of TPSCo’s business operations. TPSCo, headquartered in Japan, is a Japanese corporation in which Tower holds a 51% equity interest and NTCJ holds the remaining 49% equity interest. TPSCo provides wafer processing and assembly services and currently operates a 12-inch fabrication facility in Uozu, Japan, and an 8-inch fabrication facility in Tonami, Japan. Under the framework agreement, upon closing of the transaction, Tower will gain full ownership and operational control of TPSCo’s 12-inch fab and foundry business, while TPSCo’s 8-inch fab and foundry business will remain within TPSCo, which will become a wholly owned subsidiary of NTCJ, for consideration of $25M payment by NTCJ to Tower on the closing date. The transaction is expected to close on April 1, 2027, subject to the satisfaction of customary closing conditions and receipt of applicable regulatory approvals.