News

Published: February 12, 2024
Updated: February 12, 2024

Israel's Tower Semiconductor Proposes $8 Billion Chip Plant in India

Investment Proposal:

Israel's Tower Semiconductor has unveiled plans to construct an $8 billion chip-making facility in India, aiming to capitalize on the country's burgeoning semiconductor manufacturing sector. The company is seeking government incentives to facilitate the establishment of the facility, with a focus on producing 65 nanometre and 40 nanometre chips within India's borders.

Strategic Partnership and Government Support:

Tower Semiconductor's proposal aligns with Prime Minister Narendra Modi's emphasis on semiconductor manufacturing as a key aspect of India's economic agenda. In December 2021, the government introduced a $10 billion scheme to bolster the semiconductor industry, underscoring its commitment to fostering technological innovation and self-reliance.

High-Level Engagements:

Minister of State for IT, Rajeev Chandrasekhar, engaged with Tower Semiconductor CEO Russell C Ellwanger in October of the previous year, discussing potential collaborations between India and Tower in the semiconductor domain. This meeting, attended by Israel's Ambassador to India, Naor Gilon, highlights the strategic importance of the proposed partnership.

Intel-Tower Semiconductor Dynamics:

Tower Semiconductor's association with the International Semiconductor Consortium (ISMC) and its application to join India's semiconductor scheme faced uncertainty due to Intel's proposed acquisition. However, with the deal off the table, discussions between Tower Semiconductor and the Ministry of Electronics and IT have resumed, signaling renewed prospects for collaboration.

Why Tower Semiconductor?

Tower Semiconductor's stature as a leading foundry of high-value analog semiconductor solutions makes it a compelling choice for India's semiconductor ecosystem. With a diverse clientele spanning industries such as automotive, medical, industrial, and defense, Tower Semiconductor brings valuable expertise and experience to the table.

Contributions to India's Semiconductor Landscape:

Tower Semiconductor's history of offering support to India's semiconductor initiatives dates back to 2013-14, when it was part of a consortium aimed at establishing a technology partnership. The company's continued commitment to fostering India's semiconductor ecosystem underscores its dedication to technological advancement and industry collaboration.

Expanding Semiconductor Presence:

Tower Semiconductor's proposed investment comes amid a broader trend of semiconductor companies expanding their footprint in India. US chipmaker Micron Technology recently announced a significant investment to establish an assembly and test facility in Gujarat, further solidifying India's position as a key player in the global semiconductor landscape.

Tower Semiconductor's proposal to build a state-of-the-art chip-making facility in India represents a significant milestone in the country's journey towards semiconductor self-sufficiency. With strategic partnerships, government support, and industry expertise, India is poised to emerge as a prominent hub for semiconductor manufacturing, driving innovation and economic growth in the process.