Israel's Tower Semiconductor proposes $8 billion chip plant in India.
According to The Indian Express, Tower Semiconductor from Israel has presented a plan to construct an $8 billion semiconductor manufacturing facility in India.
According to The Indian Express, Tower Semiconductor, based in Israel, has proposed the construction of an $8 billion chip-making facility in India, seeking government incentives for its initiative. The company aims to produce 65 nanometre and 40 nanometre chips within the country.
Prime Minister Narendra Modi's administration views semiconductor manufacturing as a crucial aspect of its economic agenda. To this end, in December 2021, the government introduced a $10 billion scheme. In October of the previous year, Minister of State for IT Rajeev Chandrasekhar met with Tower Semiconductor CEO Russell C Ellwanger, with Israel's Ambassador to India, Naor Gilon, also present. Chandrasekhar mentioned discussions about the semiconductor partnership between India and Tower.
In 2022, the International Semiconductor Consortium (ISMC), of which Tower Semiconductor is a member, applied to join India's semiconductor scheme. However, when Intel proposed to acquire Tower Semiconductor, the government paused the decision on the consortium’s application due to uncertainties about Intel’s plans post-acquisition. Despite Intel's earlier statement to Business Today indicating no immediate plans for a foundry in India, discussions resumed with Tower Semiconductor after the Intel-Tower Semiconductor deal fell through.