Chipmaker Tower hoping to set up $8 billion plant in India
Chipmaker Tower hoping to set up $8 billion plant in India
Tower, seeking government incentives for its plan, is looking to manufacture 65 nanometre and 40 nanometre chips in India, according to the Indian Express
Israel's Tower Semiconductor has submitted a proposal to India's government to build an $8 billion chipmaking facility in the South Asian nation, national daily Indian Express reported on Sunday.
Tower, seeking government incentives for its plan, is looking to manufacture 65 nanometre and 40 nanometre chips in India, the report said.
The company and India's IT ministry did not immediately respond to requests for comment.
Chip manufacturing is a key plank of Prime Minister Narendra Modi's business agenda, but initial bids to offer $10 billion in incentives to the industry have floundered, with some proposals stalled or canceled.
Tower, under the management of Russell Ellwanger, has been connected to setting up chipmaking factories in India several times over recent years. In May 2022 it was announced that it would be the main partner, responsible for technology, in a consortium of companies that would establish a $3 billion chip manufacturing plant in the country. The official announcement came three months after Intel revealed its intention to acquire Tower for $5.4 billion, a merger that ultimately fell through due to regulatory issues in China.
Tower, which currently has two plants in Migdal HaEmek, two plants in the U.S. and two more in Japan, received from Intel a cancellation fee of $375 million, an amount that is admittedly not enough to establish a new plant, but can certainly be used as initial capital that can be leveraged.
