Israel’s Tower Semiconductor Proposes $8 Billion Microchip Factory in India
Following India’s bid to attract semiconductor manufacturers, news has focused primarily on efforts by Foxconn. However, their venture with the local company Vedanta fell apart. Israeli firm Tower Semiconductor has now stepped in, looking to negotiate a similar proposal with the Indian government, one which is estimated to cost around $8 billion.
A report by The Indian Express reveals that Tower Semiconductor has filed an official application to establish a factory in India. This factory would be involved in the contract manufacturing of 65-nanometer and 40-nanometer chips for the wearable technology and automotive sectors. The Indian Minister for Electronics and Information Technology, Rajeev Chandrasekhar, reportedly met with Russell Ellwanger, the CEO of Tower Semiconductor, to discuss this matter back in October.
The Indian government has amassed a total of $10 billion in subsidies for the national semiconductor industry. However, so far, there have been no major contenders for these funds. Initially, Tower intended to construct a $3 billion chip manufacturing facility in the Indian state of Karnataka in alliance with ISMC. Yet the project was delayed due to Intel’s plans to acquire Tower Semiconductor. By August last year, it had become clear that Intel’s takeover of Tower would not happen, and the original Indian project approval was stalled too.
If the Indian government covers half of Tower’s costs, that would mean allocating $4 billion in subsidies. The government in the state where the proposed Tower facility in India would be located may also offer additional financial support. However, the precise details regarding the location of the prospective factory are yet to be clarified. Furthermore, it should be highlighted that the submission of this application doesn’t guarantee the successful implementation of the project.
