New Delhi: A significant development emerges as Israel’s Tower Semiconductor unveils plans for an $8 billion chip-manufacturing facility in India, according to a media report. Seeking government incentives, Tower aims to produce 65 nanometre and 40 nanometre chips within the country.
Prime Minister Narendra Modi’s strategic focus on semiconductor manufacturing receives a boost, with Tower Semiconductor’s proposal aligning closely with India’s business agenda. The government’s $10 billion scheme unveiled in December 2021 underscores the nation’s commitment to bolstering its semiconductor capabilities.
Minister of State for IT, Rajeev Chandrasekhar, engaged in discussions with Tower Semiconductor CEO Russell C Ellwanger in October last year, emphasizing the potential partnership between India and Tower in semiconductor manufacturing. Notably, this meeting included Naor Gilon, Israel’s Ambassador to India.
In 2022, the International Semiconductor Consortium (ISMC), of which Tower Semiconductor is a member, applied to participate in India’s semiconductor scheme. However, Intel’s proposed acquisition of Tower Semiconductor prompted a pause in the consortium’s application approval. With the Intel-Tower Semiconductor deal off the table, the Ministry of Electronics and IT resumed discussions with Tower Semiconductor.
Tower Semiconductor’s selection as a partner for this venture is strategic. Renowned for its expertise in analog integrated circuits across various industries including automotive, medical, and aerospace, Tower Semiconductor has consistently shown willingness to contribute to India’s semiconductor ecosystem. Ranked seventh in global foundry revenue, Tower Semiconductor’s annual revenue exceeds $1 billion, making it a valuable ally in India’s semiconductor journey.
Notably, this move aligns with Micron Technology’s investment of $825 million in Gujarat to establish a new assembly and test facility, with operations set to commence in late 2024. According to Ashwini Vaishnaw, Micron plans to roll out its first chip in India by December 2024, further solidifying the nation’s position in the global semiconductor landscape.
