Israel's Tower Semiconductor proposes $8 bn chip plant in India

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Israel's Tower Semiconductor proposes $8 bn chip plant in India

Israel's Tower Semiconductor proposes $8 bn chip plant in India

Industry News
Feb 12,24

The company aims to produce 65 nanometre and 40 nanometre chips, applicable in various sectors such as automotive and wearable electronics.

Israel's Tower Semiconductor proposes $8 bn chip plant in India

According to a report, Tower Semiconductor, the Israeli chipmaker, has presented a proposal to the Indian government for the establishment of an $8 billion chip manufacturing plant in India. The company aims to produce 65 nanometre and 40 nanometre chips, applicable in various sectors such as automotive and wearable electronics. Minister Rajeev Chandrasekhar had discussed potential collaboration in chip manufacturing with Tower Semiconductor's CEO Russel C Ellwanger in October 2023. If the government accepts the proposal, it would significantly advance India's ambitions in chip manufacturing, benefiting from the 50% capital expenditure subsidy offered under the $10 billion chip manufacturing scheme.

Previously, Tower Semiconductor had sought approval for a $3 billion chip plant in Karnataka in partnership with ISMC, but the plan was halted due to an impending merger with Intel. Meanwhile, CG Power and Industrial Solutions announced a $222 million partnership with Renesas Electronics and Stars Microelectronics to establish a semiconductor facility in India. This joint venture will focus on outsourced semiconductor assembly and testing (OSAT), with CG Power holding a majority 92.34% stake, while Renesas and Stars will have 6.76% and 0.9% stakes, respectively. Despite the absence of domestic chip manufacturing plants, Foxconn from Taiwan and Vedanta from India are also exploring opportunities to contribute to chip production in the country.

Source: Livemint