News Brief
Israel's Tower Semiconductor Plans $8 Billion Chip Fabrication Plant In India; Here's The Progress Made So Far
A semiconductor chip. (Representative Image)
Israel-based semiconductor manufacturer Tower Semiconductor, has submitted a proposal to establish a chip fabrication plant in India valued at approximately $8 billion, as per a report from The Indian Express.
The government is currently evaluating the proposal and aims to approve it before the onset of the model code of conduct preceding the upcoming general elections.
If Tower Semiconductor's proposal receives government approval, it would mark the entry of the first semiconductor company with significant fabrication expertise into India's $10 billion chip manufacturing initiative, providing a significant boost to New Delhi's aspirations in the chipmaking sector.
Under the scheme, successful applicants are promised a 50 per cent capital expenditure subsidy.
Therefore, if Tower Semiconductor's plant costs $8 billion, the central government will provide $4 billion in funding. Additionally, the company may receive further benefits from the state where the chip foundry is situated.
Tower Semiconductor intends to produce 65-nanometer and 40-nanometer chips in India, with potential applications in various sectors such as automotive and wearable electronics.
Minister of State for Electronics and IT, Rajeev Chandrasekhar, held discussions with Tower Semiconductor's CEO, Russel C Ellwanger, last October regarding the company's collaboration with India in the chip sector.
Previously, Tower Semiconductor had applied to the scheme to establish a $3 billion plant in Karnataka in partnership with the international consortium, ISMC.
However, the plan faced obstacles due to Tower Semiconductor's impending merger with Intel.
In August last year, Intel scrapped its plan to acquire Tower Semiconductor for $5.4 billion due to regulatory hurdles.
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