Tower Semiconductor Proposes $8 Bln Facility In India
Israeli chip-making company, Tower Semiconductor Ltd. (TSEM), has proposed building an $8 billion semiconductor fabrication plant in India.
According to reports from The Indian Express, if approved by the Indian government, Tower would participate in the government’s $10 billion chip manufacturing initiative. The company would also qualify for a 50% subsidy on the building’s capital costs.
The proposal for the semiconductor fabrication plant was submitted under India’s ‘Modified Program for Semiconductors and Display Fab Ecosystem.’ This scheme enables companies to request up to 50% of capital costs for qualified semiconductor and display manufacturing projects. The Indian government could potentially contribute $4 billion to this project.
If the proposal is approved, Tower Semiconductor aims to produce 65 nanometer and 40 nanometer chips for various sectors, including automotive and wearable electronics. These chips would be produced in India, which is a significant development for the country’s technology sector.
In October, Rajeev Chandrasekhar, the Minister of State for Electronics and IT, met with Tower’s CEO Russel Ellwanger to discuss the plan. The Indian government is expected to approve the proposal before the upcoming general election.
It’s worth noting that Tower Semiconductor has previously applied to the initiative in collaboration with the international consortium ISMC to build a $3 billion plant in Karnataka, India’s southern state.
However, the plan was disrupted by Intel’s abandoned acquisition of Tower. In August of last year, Intel terminated its $5.4 billion acquisition deal with Tower Semiconductor due to regulatory challenges. This new proposal by Tower Semiconductor could potentially revive the company’s plans to expand its operations in India.
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