Israel’s Tower Semiconductor has outlined plans for an $8 billion semiconductor manufacturing facility in India, focusing on the production of 65 nanometre and 40 nanometre chips. This initiative aligns with Prime Minister Narendra Modi’s push for domestic semiconductor manufacturing, supported by a dedicated $10 billion scheme introduced in December 2021.
Government and Industry Collaboration:
The Minister of State for IT, Rajeev Chandrasekhar, engaged in talks with Tower Semiconductor CEO Russell C Ellwanger in October last year, emphasizing the strategic partnership between India and Tower in the semiconductor domain. The discussions centred around leveraging the strengths of both entities for mutual growth.
In 2022, Tower Semiconductor, as part of the International Semiconductor Consortium (ISMC), applied for inclusion in India’s semiconductor scheme. However, this application was temporarily put on hold due to Intel’s proposed acquisition of Tower Semiconductor. With the cancellation of the Intel-Tower Semiconductor deal, discussions resumed between the Ministry of Electronics and IT and Tower Semiconductor.
Tower Semiconductor’s Role:
Tower Semiconductor, a prominent Israeli foundry specializing in analog semiconductor solutions, has consistently expressed interest in contributing to India’s semiconductor ecosystem. The company has been part of consortium-led initiatives in the past, showcasing its commitment to fostering technological collaborations.
If approved and executed, Tower Semiconductor’s proposed chip manufacturing facility could significantly enhance India’s semiconductor capabilities. This move aligns with India’s broader strategy to reduce reliance on semiconductor imports and establish itself as a noteworthy player in semiconductor manufacturing.
The announcement comes against the backdrop of US chipmaker Micron Technology’s $825 million investment in a new assembly and test facility in Gujarat. Micron aims to roll out its first chip in India by December 2024, indicating a growing focus on strengthening the semiconductor industry within the country.
Conclusion and Future Outlook:
Tower Semiconductor’s interest in establishing a substantial chip manufacturing facility in India represents a promising step forward for the country’s semiconductor ambitions. Successful collaboration with Tower Semiconductor could pave the way for further global investments and partnerships, positioning India as a key player in the ever-evolving semiconductor landscape.
