Tower Semiconductors  (Nasdaq: TSEM)  is in advanced negotiations to sell chips to two big Chinese companies. Each contract is expected to be worth multiple millions of dollars a year.

Last week representatives of the two Chinese companies visited TOwer's premises in Israel. Following that visit, Tower CEO Russell Ellwanger and two other top executives will be traveling to China and Taiwan, to present the company in a sort of road show before existing and potential customers.

Tower's existing customers include Macronix, which is also a shareholder by virtue of investment in Tower's Fab 2 facility in Migdal Haemek. The company executives will also be meeting with representatives of about ten potential clients.

A source near the company says that Tower hopes to close deals worth tens of millions of dollars following the presentation.

At present Tower is presenting itself anew to Israeli institutional investors, ahead of a $30 million private placement of bonds. It wants more cash to close a deal to buy the American chipmaker AMD, as an expansion of Fab 2. It would cost about $80 million.

In March Tower raised $29 million in a private placement of shares and warrants to U.S. institutional investors.

The Israeli company also raised money last year. From the start of 2006 to date, it's raised $230 million.

Tower confirmed that its CEO will be traveling to Taiwan and China. Its shares are rising 1% on the Tel Aviv Stock Exchange.