Tower Semi in talks to buy AMD equipment -paper

JERUSALEM, June 5 (Reuters) - Tower Semiconductor Ltd. (TSEM.TA) (TSEM.O), an Israel-based contract maker of microchips, is in talks with Advanced Micro Devices Inc. (AMD.N) to buy $80 million worth of equipment, the Yedioth Ahronoth daily reported on Tuesday.

Tower would use the equipment to help boost production at its Fab 2 plant to 35,000 silicon wafers a month from 24,000, the newspaper said.

Tower also intends to raise $40 million in a bond offering to Israeli institutional investors, the paper said.

Tower officials declined to comment.