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The news that Elstein will replace Dov Moran caused Tower's shares to surge more than 20 percent compared with gains of 1.7 percent in the broader Tel Aviv market.
"I think 2009 is an opportunity year to create a meaningful turnaround at Tower," Elstein told Reuters.
Tower, a small player in a $20 billion-a-year chip industry, has carved out a niche as a specialty maker of image sensors used for medical and dental x-rays, mobile phone cameras and digital cameras, as well as embedded memory chips.
Tower's shares on Nasdaq have plunged in the global financial crisis to only 17 cents from $1.35 a year ago.
Elstein said the best way to boost the share price was to deliver improved results.
"We are probably beyond the lowest point in the U-shaped curve of Tower in the market," he said.
Elstein on Jan 1 became a member of the board of Teva Pharmaceutical Industries, the world's biggest generic drug maker, where he served as executive vice president overseeing global pharmaceutical resources.
Prior to Teva, he was general manager of Intel Electronics, an Israeli subsidiary of Intel Corp, from 1998 to 2004.
Moran will remain a member on Tower's board.
Elstein noted that Tower was entering 2009 in a better financial position than in 2008, having restructured its debt with its banks and parent company Israel Corp.
"2009 is a problematic business environment. A company like Tower with a clear vision and management leadership can look around for competitive alignments in mergers and acquisitions and joint ventures," he said.
Tower recently bought Jazz Technologies of the United States in an all-stock deal.
Elstein said a company does not need a lot of cash to create opportunities in times of economic hardships.
"In good times, unless you can pay a lot no one will look your way to create synergistic alignments but consolidation is accelerating because of the problematic situation," he said.
Elstein said he wants to grow Tower's customer base as well as building technologies and service capabilities alongside effective manufacturing.
Elstein also called on the government's Investment Centre to release $45 million it promised to Tower for 2008 for investment in technology and infrastructure but has yet to deliver. A hearing in Israel's high court is scheduled for October 2009.
(Editing by Sharon Lindores) Keywords: TOWERSEMI CHAIRMAN/ (telaviv.newsroom@reuters.com; +972-9-899-0222; Reuters Messaging: tova.cohen.reuters.com@reuters.net)
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