Sikkim News Update

Israeli chip manufacturer Tower is closing a $8 billion Indian manufacturing facility

<p>According to The Indian Express, Israel-based Tower Semiconductor has filed a proposal to establish a $8 billion chip fabrication unit in India. In preparation for this year’s general elections, the government is evaluating its proposal and hopes to have it approved before the model code of conduct takes effect.</p>
<p><img decoding=”async” class=”alignnone wp-image-400381″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-israeli-chip-manufacturer-tower-is-closing-a-8-billion-indian-manufacturing-facili.jpg” alt=”theindiaprint.com israeli chip manufacturer tower is closing a 8 billion indian manufacturing facili” width=”1076″ height=”605″ title=”Israeli chip manufacturer Tower is closing a $8 billion Indian manufacturing facility 15″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-israeli-chip-manufacturer-tower-is-closing-a-8-billion-indian-manufacturing-facili.jpg 640w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-israeli-chip-manufacturer-tower-is-closing-a-8-billion-indian-manufacturing-facili-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-israeli-chip-manufacturer-tower-is-closing-a-8-billion-indian-manufacturing-facili-150×84.jpg 150w” sizes=”(max-width: 1076px) 100vw, 1076px” /></p>
<p>Tower’s bid would be a significant boost to New Delhi’s chipmaking aspirations if approved by the government. It would be the first semiconductor business with a genuine fabrication background to join India’s $10 billion chip manufacturing project.</p>
<p>Successful applicants will get a 50% capital expenditure subsidy under the system, which means that if Tower’s plant costs $8 billion, the Center would have to pay $4 billion out of its own funds. Any state where the chip foundry may be situated might provide the business with more advantages.</p>
<p>Tower plans to produce 40 and 65-nanometer chips in India, which might find use in the wearable electronics and automotive industries, among other fields.</p>
<p>In October of last year, Tower’s CEO, Russell C. Ellwanger, met with Rajeev Chandrasekhar, the Minister of State for Electronics and IT, to explore the company’s chip cooperation with India.</p>
<p>Requests for a response from Tower Semiconductor were not answered.</p>
<p>Tower has previously submitted an application for the project to establish a $3 billion factory in Karnataka with the help of the global consortium ISMC. However, because of the company’s then-upcoming merger with Intel, the idea was put on hold. Due to regulatory concerns, Intel scrapped its $5.4 billion acquisition plan of Tower Semiconductor in August.</p>
<p>An antitrust assessment of the Intel and Tower merger, which was announced in February 2022, was approved in the US and a number of other countries. However, it encountered a protracted hold-up in China, where authorities examine mergers of businesses that generate a certain threshold of income in the nation.</p>
<p>In order to establish a semiconductor assembly and testing factory in India, CG Power and Industrial Solutions said on Friday that it has entered into a joint venture (JV) agreement with Renesas Electronics America and Thailand-based Stars Microelectronics.</p>
<p>Although India has been successful in luring major players like Micron Technology to establish a chip packaging unit there, a proposal to establish a fully functional fabrication plant has not yet been approved.</p>
<p>Although Micron’s $825 million investment pledge for its packaging factory was a significant victory for India’s chip aspirations, the establishment of a chip foundry would be a significant milestone and encourage other investments in the chip industry.</p>
<p>Last year, Foxconn, the company best known for making iPhones, and Vedanta abruptly ended their $19.5 billion chip facility joint venture. Foxconn declared its intention to leave the joint venture with Vedanta. Although official sources assert that the two may be applicable independently, there hasn’t been any progress so far.</p>
<p>According to information obtained, Singapore-based IGSS Venture had a third fantastic idea, but the government advisory council did not think it was good enough, so it was put on hold.</p>