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Tower Semiconductor proposes to set up USD eight bln chipmaking plant in India

Monday, 12 Feb 2024
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Israel-based chipmaker Tower Semiconductor has submitted a proposal to the government to set up an USD eight billion chipmaking plant in India.

The company seeks to manufacture 65 nanometre and 40 nanometre chips in the country, which may be used in a number of sectors, including automotive and wearable electronics.

In October 2023, Minister of State for Electronics and IT Rajeev Chandrasekhar had met with Tower Semiconductor’s top executive to discuss its partnership with India in the chip manufacturing space. If the Israeli chipmaker’s proposal is accepted by the government, it is expected to boost India’s chip manufacturing mission.

Under the USD 10 billion chip manufacturing scheme, India offers a 50 percent capital expenditure subsidy to successful applicants.

Earlier, the Israeli chipmaker had applied to set up a USD three billion chips making plant in Karnataka in partnership with international consortium ISMC, a joint venture between Tower Semiconductor, and Abu Dhabi-based Next Orbit Ventures. However, the plan was suspended later.

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