The initiative of the Indian authorities to attract chip manufacturers to the country mainly generated news about Foxconn’s intentions to try its hand in this area, but the project of cooperation with the local company Vedanta fell apart. As it turns out, the Israeli Tower Semiconductor is also trying to coordinate a similar initiative with the Indian authorities, the cost of implementation of which is estimated at $8 billion.
Edition The Indian Express reports that Tower Semiconductor has already submitted a formal project application to build a facility in India that will be able to engage in contract manufacturing of 65-nm and 40-nm chips for the wearable electronics and automotive segments. Back in October, according to sources, Indian Minister of Electronics Industry and Information Technology Rajeev Chandrasekhar met with Tower Semiconductor CEO Russell Ellwanger to discuss the issue.
Let us recall that the Indian authorities are ready to allocate a total of $10 billion to subsidize the national semiconductor industry, but so far there have been no major contenders for these funds. Initially, Tower expected to build a $3 billion chip production facility in the Indian state of Karnataka in an alliance with ISMC, but at that time Intel expected to absorb Tower Semiconductor, and approval of the project was delayed. By August last year, it became clear that Intel would not be able to absorb Tower Semiconductor, but the company’s Indian project also could not be agreed upon in its original version.
If Indian authorities cover up to half of Tower’s costs, they will have to provide $4 billion in subsidies. The authorities of the state in which the Tower enterprise will appear in India may offer additional financial support. However, where exactly such an enterprise will appear has not yet been specified. The mere fact of submitting an application does not guarantee the successful implementation of the project.