Tower Semi to make CMOS image sensors for Cypress

JERUSALEM, July 7 (Reuters) - Israel's Tower Semiconductor (TSEM.O) will collaborate with Cypress Semiconductor (CY.N) 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)