Tower to build $8bn fab in India?
Online reports say Tower Semiconductor has submitted a proposal to create a major new facility, with the Indian government paying half of the cost.
The Indian Express believes that Israeli chip maker Tower Semiconductor is in talks with Indian government representatives about subsiding the construction of a fab in the country to produce 65nm and 40nm chips. It speculates that the state will pick up half of the USD 8 billion price tag.
It's all unconfirmed speculation, but Tower and India do have plenty of history. Tower previously submitted a proposal to build a fab in Karnataka as part of the International Semiconductor Consortium (ISMC) – a joint venture between Tower, Abu Dhabi-based Next Orbit Ventures and Intel Corp. ISMC was a key plank of Prime Minister Narendra Modi's USD 10 billion plan to incentivise companies to set up semiconductor operations in India.
But that project was canned when Tower began a merger with Intel (which was itself later cancelled). Now, with the Intel-Tower Semiconductor deal off the table, it would appear negotiations have resumed.
Tower Semiconductor serves over 300 customers worldwide across diverse sectors including automotive, medical, industrial, consumer, aerospace, and defence. It is ranked seventh in global foundry revenue according to TrendForce.