A fight for position shakes up the specialty foundry business

There's a nice battle shaping up for the number two spot among pure-play analog foundries in 2010. And you might be surprised at the key weapons the two sides are deploying.

The two foundries involved are Dongbu HiTek and TowerJazz, ranked numbers two and three respectively in 2008 sales for specialty pure-play foundries by iSuppli. Vanguard is number one, in case you were curious. Dongbu led last year with $433 million in sales, and Tower and Jazz together—the two companies merged in September, 2008—posted sales of $386 million. The merger happened right before the collapse of Lehman Brothers, so late 2008 and 2009 show, shall we say, a bit of a discontinuity, but both companies appear to be growing again.

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