This collaboration will enable TowerJazz to provide the most advanced BSI technology for the high-end market of CMOS image sensors for large-scale production.

Migdal Emek, Israel and Changchun, China, on October 30, 2017

--TowerJazz, as a leading global wafer manufacturer specializing in special processes, announced today that it has established a partnership with Changchun Changguang Yuanchen Microelectronics Technology Co., Ltd. (YCM) in China for backside illumination (BSI) process manufacturing. BSI's process processing technology will be used on TowerJazz's wafers produced for CMOS image sensors. This collaboration will enable TowerJazz to start providing advanced BSI technology and competitive pricing to customers worldwide in mid-2018, entering the mass production stage.

The new BSI technology will be utilized in the high-end imaging, automotive, and AR/VR markets, as well as other rapidly growing CIS markets. This is the first time that a wafer manufacturer has provided BSI technology to the high-end imaging market, including ultra large chips that require stitching technology.

BSI and wafer stacking are cutting-edge CIS technologies for high pixel sensitivity, which allow for an increase in the number of photons captured by pixels under low light conditions to achieve better image quality, while also providing higher dynamic range and frame rate (faster sensors).

TowerJazz and its major leading clients believe that BSI technology will play an important role in the growing high-end CIS market, including DSLR cameras for high-end photography, photography cameras, automobiles, and more. TowerJazz's BSI technology is significant as it focuses on high-end large sizes, including ultra large sensors that require stitching technology. It also showcases the development blueprint of wafer stack e technology, including the most advanced pixel level wafer stack.

TowerJazz is globally recognized as a leader in high-end CMOS image sensor manufacturing platforms, "said Li Dabing, CEO of Changchun Changguang Yuanchen Microelectronics Technology Co., Ltd. The collaboration with TowerJazz will undoubtedly enable us to quickly and efficiently bring unique, high-value technologies to the market, especially in the continuously growing Chinese market where TowerJazz has played an important role. ”

I am very pleased and excited to have the ability and opportunity to develop with YCM and support its leading position in many different and continuously growing high-end markets. In addition, our collaboration with YCM enables us to further penetrate the rapidly growing high-end CMOS camera market in China, "said Dr. Avi Strum, Senior Vice President and General Manager of the CMOS Image Sensor Business Unit. I have great confidence in the technical capabilities of this collaboration

About YCM

Changchun Changguang Yuanchen Microelectronics Technology Co., Ltd. (YCM) was established on December 29, 2016. It is one of the main contract manufacturers worldwide that focuses on the Back Illumination (BSI-CIS) process for CMOS image sensors. YCM provides BSI process for 200mm and 300mm CIS wafers. For more information, please contact yc@ycmec.com .

About TowerJazz

Tower Semiconductor Limited (NASDAQ: TSEM, Tel Aviv Stock Exchange: TSEM) and its subsidiaries operate under the name TowerJazz as a leading global foundry of specialty process crystals. TowerJazz produces next-generation integrated circuits (ICs) in growing markets such as consumer, industrial, automotive, medical, aerospace, and defense industries. TowerJazz's advanced technology consists of a wide range of customizable process platforms, such as SiGe, BiCMOS, mixed signal/CMOS, RF CMOS, CMOS image sensors, integrated power management (BCD and 700V), and MEMS. TowerJazz also provides fast and accurate design cycles to achieve world-class design support, from transfer optimization and development process services (TOPS) to independent equipment manufacturers and design companies for fabless foundries that need to expand production capacity. In order to provide customers with multi vendor procurement and full production capacity, TowerJazz has two wafer fabs in Israel (150mm and 200mm), two wafer fabs in the United States (200mm), and operates three wafer fabs in Japan (two 200mm and one 300mm).