 |
| Tower Semiconductor Eyes $8 Billion Chip Fabrication Plant in India: Boosting Nation's Chipmaking Ambitions |
Israel-based chip manufacturer, Tower Semiconductor, is in the final stages of proposing an $8 billion chip fabrication plant in India, a move that could significantly advance the country's chipmaking sector. The government, currently evaluating the proposal, aims to approve it before the upcoming general elections.
If accepted, Tower's venture would mark a pivotal moment as the first semiconductor company with genuine fabrication expertise to participate in India's $10 billion chip manufacturing initiative. The scheme offers a substantial 50% capital expenditure subsidy to successful applicants, potentially providing Tower with a $4 billion boost from the government.
The company's plan involves the production of 65 nanometre and 40 nanometre chips in India, catering to diverse sectors such as automotive and wearable electronics. This strategic move aligns with Minister of State for Electronics and IT Rajeev Chandrasekhar's discussions with Tower's CEO, Russel C Ellwanger, in October of the previous year.
Interestingly, Tower had previously applied to establish a $3 billion plant in Karnataka in collaboration with the international consortium ISMC. Unfortunately, the plan faced delays due to Tower's merger with Intel. Last August, Intel abandoned its $5.4 billion acquisition of Tower Semiconductor, citing regulatory challenges.
While India has successfully attracted major players like Micron Technology for chip packaging, the approval of Tower's proposal would signify a significant milestone by establishing a full-fledged fabrication plant. Despite earlier setbacks, India's chip ambitions remain strong, evidenced by recent joint ventures like CG Power and Industrial Solutions partnering with Renesas Electronics America and Stars Microelectronics to establish a semiconductor assembly and testing plant.
Although a joint venture between Foxconn and Vedanta for a $19.5 billion chip plant encountered obstacles last year, Tower Semiconductor's potential entry into India's chipmaking landscape brings renewed hope for the country's flourishing semiconductor industry. As other proposals linger, Tower's substantial investment could pave the way for additional developments in India's pursuit of becoming a prominent player in the global chip market.
0 Comments