3Peak sees chip output jump on deal with Israel's TowerJazz

[March 30, 2016]  JERUSALEM (Reuters) - Chinese chipmaker 3Peak expects a sharp increase in integrated circuit (IC) shipments this year due as it expands its manufacturing output to a plant in Japan through an extension of its collaboration with Israel's TowerJazz.

3Peak's products are currently solely produced at TowerJazz's 200mm fab in Israel and are now starting to also be made at the TowerJazz Panasonic Semiconductor fab in Japan.

"In 2015, 3PEAK's IC shipments increased 35 percent compared with 2014. With dual sourcing capabilities, we expect to have an increase of 200 percent in 2016," Joe Zhou, chief executive of 3peak, said in a statement on Wednesday.

TowerJazz noted that the dual sourcing will assure 3Peak supply and provide a closer proximity to China. TowerJazz shares were up 4.5 percent in afternoon trading in Tel Aviv.

(Reporting by Steven Scheer)

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