Entropic Communications, Inc. (Nasdaq: ENTR), a leading provider of silicon and software solutions that enable connected home entertainment, and TowerJazz (NASDAQ: TSEM) (TASE: TSEM), the global specialty foundry leader, today announced an expanded supplier capacity agreement that provides enhanced supply predictability and upside flexibility to support Entropic’s Direct Broadcast Satellite (DBS) and TV tuner product lines.

The expanded agreement assures high-volume production for Entropic’s family of outdoor unit (ODU) silicon, which comprises both its Channel Stacking Switch (CSS) and Band Translation Switch (BTS) products, as well as its multi-mode silicon TV tuner products.

Entropic’s ODU technologies create a single cable network that reduce cost and installation complexity for DBS operators; allowing for remote upgrades, support for the distribution of high definition (HD) quality content, and prepare operator systems to further expand home networking application offerings. TowerJazz will also expand its manufacturing capacity to support Entropic’s family of multi-mode silicon TV tuner solutions, which aim to replace high volume can tuners in support of worldwide standards for delivering high performance digital TV (DTV) in cable/terrestrial set-top box (STB) products.

“TowerJazz has been a strategic supplier to Entropic for many years and as a result, we have been able to address the demanding performance requirements of today’s rapidly growing home entertainment market,” said Mike Farese, Senior Vice President, Operations & Engineering, Entropic. “Due to the increase in the volume of production for our DBS ODU and tuner products, we entered into a new supply agreement with TowerJazz to meet the expanding needs of our customers. The foundry’s advanced process, models, and support have been key in helping us achieve specific product goals.”

“TowerJazz is pleased to build on the partnership with a market leader such as Entropic that continues to leverage our BiCMOS 1 and RF CMOS 2 technology and design enablement to deliver timely and innovative solutions for ODU and TV tuning technologies,” said Marco Racanelli, Senior Vice President and General Manager, RF and High Performance Analog Business Group, TowerJazz. “With the addition of a long term supply agreement and planned multi-fab sourcing at TowerJazz’s various geographic regions, we are jointly poised to take advantage of the strong growth anticipated for these products and look forward to supporting Entropic and its customers as they continue to improve the way multimedia is delivered into and enjoyed throughout the home.”

As part of the agreement, TowerJazz will expand its wafer fabrication capacity at its Newport Beach, CA facility for Entropic products, and will also support a program to achieve greater production of Entropic’s ODU and silicon TV tuner products at its production facility in Migdal Haemek, Israel.