UPDATE 1-Chipmaker TowerJazz sees record Q2 revenue

Mon Jun 13, 2011 6:33am EDT

* Sees Q2 revenue of $136 mln-$142 mln

* Mid-range of outlook up 11 percent over year ago

(Adds details, background)

TEL AVIV, June 13 (Reuters) - Israeli chipmaker TowerJazz (TSEM.TA) (TSEM.TA) said on Monday it expects a double-digit rise in second-quarter revenue to a record level.

The company forecast quarterly revenue to be between $136 million and $142 million. The mid-range of the range is a record high and represents a 15 percent increase from $120.6 million in the first quarter and an 11 percent rise year-on-year.

A week ago TowerJazz said it had completed its acquisition of Micron Technology's (MU.O) chip plant in Nishiwaki, Japan. The acquisition nearly doubles TowerJazz's manufacturing capacity, increasing production by 60,000 wafers per month. [ID:nLDE754023]

The added capacity, which will serve the growing needs of its expanding customer base, will help TowerJazz achieve its $1 billion annual revenue run-rate target by 2014.

Chief Executive Russell Ellwanger told Reuters last month TowerJazz was on target to boost revenue in 2011 by over 12 percent.

TowerJazz will issue its second-quarter earnings on Aug. 4. (Reporting by Tova Cohen; Editing by David Holmes)