Tower Semiconductor's $8 Billion Plant to Make India a Chip Export Hub

Israel-based semiconductor company Tower Semiconductor has submitted a proposal to the Indian government to establish an $8 billion chip manufacturing plant in India. The company aims to produce 65-nanometer and 40-nanometer chips, catering to various sectors such as automotive and wearable electronics.

In October 2023, Minister of State for Electronics and IT Rajeev Chandrasekhar held discussions with Tower Semiconductor's top executive regarding potential collaboration in chip manufacturing. If approved, this proposal is expected to significantly advance India's chip manufacturing objectives.

India's chip manufacturing scheme, which offers a 50 percent capital expenditure subsidy to successful applicants, is integral to fostering such initiatives. Previously, Tower Semiconductor had sought to establish a $3 billion chip manufacturing facility in Karnataka in partnership with the international consortium ISMC. However, this plan was later suspended.

News by Rahul Yelligetti