Tower Semi to make CMOS image sensors for Cypress

JERUSALEM, July 7 (Reuters) - Israel's Tower Semiconductor (TSEM.O: Quote, Profile, Research) will collaborate with Cypress Semiconductor (CY.N: Quote, Profile, Research) in manufacturing CMOS Image Sensor components (CIS), the companies said on Monday.

The 0.18 micron products, which serve applications such as industrial imaging, high-end cameras and dental imaging, will be manufactered at Tower's new 200-mm Fab 2 plant in northern Israel.

Terms of the deal were not disclosed, but a market source said it would be worth about $10 million a year to Tower.

Cypress and Tower have collaborated on CIS products for more than five years, primarily using Tower's older Fab 1 technology. (Reporting by Steven Scheer, editing by Will Waterman)