UPDATE 1-International Rectifier, TowerJazz in multi-year deal
TEL AVIV, July 15 (Reuters) - International Rectifier Corp (IR) and TowerJazz have entered into a seven-year agreement under which the Israeli chipmaker will manufacture multiple products for IR.
A market source who asked not to be named said the deal with IR would bring in revenue of $50 million to $70 million a year to TowerJazz starting in 2014.
"IR has enjoyed a strong relationship with TowerJazz," Oleg Khaykin, IR's chief executive officer, said on Monday.
The deal with IR, a developer of power management chips, is through 2020.
"There is no greater affirmation a company can receive than a valued lead customer extending an existing agreement," said Russell Ellwanger, CEO of TowerJazz. "We look forward to many more years of partnership."
TowerJazz shares in Tel Aviv were up 0.4 percent at midday.