Tower Semiconductor (Nasdaq:TSEM; TASE:TOWER) is licensing technology from fellow Israeli company DSP Group (Nasdaq:DSPG), the two companies announced today.

Tower, a foundry, will be using DSP Group's Teak DSP Core technology in chips to be made at Fab 2, a foundry currently under construction in Migdal Ha'emek.

"This agreement significantly expands our Semiconductor Intellectual Property offering in Fab 2," commented Ishai Nachumovsky, Tower's senior director of Foundry Technologies.

The DSP technology will be implemented in 0.18 micron Industry Standard processors, used in systems-on-a-chip designs to be made at Fab 2, Nachumovsky said.

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