Tower Semiconductor, to Build an $8 Billion Chip Facility in India

Tower Semiconductor, an Israeli company, has proposed the construction of an $8 billion chip-manufacturing facility in India. The company is seeking government incentives for its plan, focusing on the production of 65 nanometre and 40 nanometre chips within the country. Semiconductor manufacturing aligns with Prime Minister Narendra Modi's key business agenda, leading to the introduction of a $10 billion scheme in December 2021. Minister of State for IT, Rajeev Chandrasekhar, held a meeting in October last year with Tower Semiconductor CEO Russell C Ellwanger, joined by Naor Gilon, Israel's Ambassador to India. Chandrasekhar stated that the discussions revolved around the partnership between India and Tower Semiconductor in the semiconductor industry.

In 2022, the International Semiconductor Consortium (ISMC), including Tower Semiconductor, applied to participate in India's semiconductor scheme. However, the process was halted as Intel expressed interest in acquiring Tower Semiconductor. The government postponed the decision on the consortium's application due to uncertainties about Intel's intentions for Tower's involvement post-acquisition. In a meeting with Prime Minister Modi and MeitY Minister Ashwani Vaishnav in 2022, Intel CEO Pat Gelsinger clarified that there were no immediate plans to establish a foundry in India. Subsequently, with the cancellation of the Intel-Tower Semiconductor deal, the Ministry of Electronics and IT resumed discussions with Tower Semiconductors. 

Tower Semiconductor, headquartered in Israel, is a prominent foundry specializing in high-value analog semiconductor solutions. The company excels in the production of analog integrated circuits, catering to over 300 customers worldwide across diverse markets such as automotive, medical, industrial, consumer, aerospace, and defense. TrendForce Q1-Q3 data ranked Tower Semiconductor seventh in global foundry revenue, reaching $356 million, and its anticipated annual revenue exceeds $1 billion. In June of the previous year, the U.S. chipmaker Micron Technology disclosed an $825 million investment to establish a new assembly and test facility in Gujarat. The initial phase of construction for this facility is expected to be operational by late 2024.