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TSEM: Tower Semiconductor Experiences Cyberevent Requiring US and Israeli Fabs to be Temporarily Shutdown

09/08/2020

By Lisa Thompson

NASDAQ:TSEM

Over the weekend, Tower Semiconductor (NASDAQ:TSEM) experienced a cyberattack that required certain of its servers and fabs in the US and Israel to be shut down. They were shut in an orderly fashion as opposed to an emergency event and should be able to be restarted when possible without damage. This attack/event is covered by insurance both for damages and business interruption insurance, but the details are being worked out between the insurance companies and Tower. Investors should remember that these fabs were not operating at maximum capacity and that production will be able to be made up with higher utilization when the fabs restart. In Q2, the affected fabs were operating at the following capacity:

The TPSCo fabs in Japan were not affected.

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