According to a latest report, Israel-borne Tower Semiconductor is planning to setup semiconductor manufacturing in India.
The setup cost of the new chip manufacturing plant by Tower Semiconductors is estimated at somewhere around $8 billion.
The Israeli semiconductor company has been enabling multi-fab wafer production options in three geographic regions, serving fabless companies as well as IDMs.
The company in this new chip manufacturing plant focuses on developing 65 nanometre and 40 nanometre chips in India.
The billion-dollar chip manufacturing investment in India by Tower Semiconductors will give a major boost to the ongoing PLI scheme and the major dialogues around developing a “chip manufacturing ecosystem in India”.
The Israeli semiconductor company’s 65-nanometre and 40-nanometre chips will be completely developed in India and will cater to various markets including automotive and wearable electronics.
In October 2023, minister of State for Electronics and IT Rajeev Chandrasekhar met with Tower Semiconductor’s chief executive officer (CEO) Russel C Ellwanger to discuss its partnership with India in the chip manufacturing space.
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.
Alongside, recently, CG Power and Industrial Solutions has partnered with Renesas Electronics and 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, Stars Microelectronics to set up an outsourced semiconductor assembly and testing (OSAT) facility.
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.
India for a long has been reiterating to elevate a chip ecosystem in India. With these latest announcements on chip manufacturing, India seems to be gaining momentum and traction in creating a semiconductor manufacturing ecosystem in India.
Currently, Taiwan’s Foxconn and India’s Vedanta are already in the juggle to manufacture chips completely ‘Make in India’.
In 2022, the International Semiconductor Consortium (ISMC), of which Tower Semiconductor is a part, applied to be part of India’s semiconductor scheme. However, at the time Intel proposed to acquire Tower Semiconductor. Due to this development, the decision on the consortium’s application was put on hold as the government wasn’t sure of Intel’s plan for letting Tower continue with the consortium post the acquisition was complete.
Micron Technology In India
Last year Micron Technology announced an investment of $825 million to set up a new assembly and test facility in Gujarat. The US chipmaker’s new chip assembly is known to be operational this year itself.
Who is Tower Semiconductor?
Tower Semiconductor is known for its global capacity assurance with high quality and flexible worldwide manufacturing capabilities. The Israeli semiconductor company has been enabling multi-fab wafer production options in three geographic regions, serving fabless companies as well as IDMs. Tower Semiconductor has been in a fray to expand its wafer capacity in its existing and other new geographies.
Tower Semiconductor offers high-quality manufacturing in its multiple worldwide fabrication facilities and drives operational excellence. Tower Semiconductor can benchmark between its different fabs as well as take advantage of the enhanced skill set within its workforce to share the best qualities and capabilities from each group across the entire organization. In this way, Tower Semiconductor is continuously improving its operational performance, manufacturing quality, and corporate cost structure. These activities allow Tower Semiconductor to better serve its customers and achieve improved financial corporate performance.
