Tower Semiconductor Proposes $8 Billion Chip-making Facility in India

Israel’s Tower Semiconductor has put forward a plan to construct an $8 billion chip-making facility in India, as reported by The Indian Express. The company is seeking government incentives to support its initiative, with a focus on manufacturing 65 nanometre and 40 nanometre chips within the country.

Prime Minister Narendra Modi’s administration has prioritised semiconductor manufacturing, unveiling a $10 billion scheme in December 2021 to bolster the sector.

Minister of State for IT, Rajeev Chandrasekhar, engaged with Tower Semiconductor CEO Russell C Ellwanger in October of the previous year, with discussions also involving Naor Gilon.

Israel’s Ambassador to India. Chandrasekhar emphasised the potential collaboration between India and Tower Semiconductor in the semiconductor industry.

In 2022, the International Semiconductor Consortium (ISMC), of which Tower Semiconductor is a member, expressed interest in participating in India’s semiconductor scheme. 

However, the consortium’s application was put on hold due to Intel’s proposed acquisition of Tower Semiconductor, leaving uncertainties regarding the continuation of Tower’s involvement in the consortium.

Following Intel CEO Pat Gelsinger’s meetings with Prime Minister Modi and Minister Ashwani Vaishnav in 2022, Intel indicated no immediate plans to establish a foundry in India. However, with the Intel-Tower Semiconductor deal abandoned, the Ministry of Electronics and IT resumed discussions with Tower Semiconductor.

Tower Semiconductor stands out due to its expertise as a leading Israel-based foundry specializing in high-value analog semiconductor solutions. With over 300 customers globally across various industries, including automotive, medical, and aerospace, Tower Semiconductor ranked seventh in global foundry revenue according to TrendForce Q1-Q3 data, with an annual revenue expected to exceed $1 billion.