Israel’s chipmaker Tower Semiconductor proposes to set up $8 billion plant in India: report
Indian Express reported on Sunday. “Tower is looking to manufacture 65 nanometre and 40 nanometre chips in India which may be used in a number of sectors, including automotive and wearable electronics," said the report. In October 2023, minister of state for electronics and IT Rajeev Chandrasekhar had met with Tower Semiconductor’s chief executive officer (CEO) Russel C Ellwanger to discuss its partnership with India in the chip manufacturing space.
If the Israeli chipmaker’s proposal is accepted by the government, it would be a big boost to India’s chip manufacturing ambitions. Under the $10 billion chip manufacturing scheme, India offers a 50 per cent capital expenditure subsidy to successful applicants. Earlier, the Israeli chipmaker had applied to set up a $3 billion chipmaking plant in Karnataka in partnership with international consortium ISMC.
However, the plan was suspended due to the company’s then impending merger with Intel. On Friday, CG Power and Industrial Solutions said it has partnered with a unit of Japanese chipmaker Renesas Electronics and Thailand's Stars Microelectronics to set up a semiconductor facility in India for $222 million. The Indian company will form a joint venture (JV) with Renesas Electronics America and the Thai electronic parts maker to set up an outsourced semiconductor assembly and testing (OSAT) facility.
An OSAT plant assembles, tests foundry-made silicon wafers, turns them into finished semiconductor chips, and packages. In the joint venture, CG Power will own the majority 92.34 per cent stake, while Renesas and Stars will hold 6.76 per cent and 0.9 per cent stakes, respectively. While India does not yet have any chip manufacturing plants, Taiwan's Foxconn and India’s Vedanta are
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