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Tower Semiconductor is to lay off around 10 percent of its workforce, according to sources close to the company.

The Migdal Ha'emek-based company employs around 1,500, and plans to dismiss some 150 workers. Tower denied the report.

The layoffs would come as a response to the company's disappointing third-quarter financial results. Tower reported revenues of $35 million and losses of $39 million. In the first nine months of the year, Tower Semiconductor has accrued losses of $114 million, and its total losses since 1998 amount to $320 million.

Nevertheless, at the end of the 1990s, the firm decided to move ahead with a $1.5 billion investment in a new Fab plant for semiconductors.

Tower managed to raise $77 million in January according to a share price of $7. However, the price has slipped some 70 percent since then, and is now trading at around $2.25. The share climbed 2.7 percent on the Nasdaq exchange yesterday after gaining 1.3 percent in Tel Aviv.

Tower Semiconductor is an independent wafer manufacturer, established in 1993. It maintains two plants, manufacturing integrated circuits with geometries ranging from 1.0 to 0.13 microns as well as offering advanced non-volatile memory solutions, mixed-signal and CMOS image-sensor technologies.