Tower Semiconductor, an Israeli company, is seeking guidance from the Indian government for its semiconductor fabrication venture in India by the end of the financial year 2024.

Tower Semiconductor, an Israeli chipmaker, is in discussions with the Indian government about establishing a semiconductor fabrication facility in India by the end of the financial year. The company's CEO, Russell C Ellwanger, and other senior executives have met with officials from the Ministry of Electronics and Information Technology (MeitY) and the India Semiconductor Mission to seek guidance and explore possibilities.

Tower Semiconductor is known for producing analog semiconductor chips and has previously assisted the Indian government in planning a 180 nm chip plant in Mohali. The company is interested in setting up a fabrication unit in India, anticipating a growing demand for its products in the country.

However, the specifics of this potential venture are still in the early stages, and no concrete plans have been confirmed. The company had previously planned a joint venture with ISMC, which was part of India's Semiconductor Mission, but it fell through after Intel's acquisition attempt. Tower Semiconductor has explored discussions with Indian companies interested in the semiconductor industry but has not yet found the right partner. It may consider entering the Indian chip fabrication market independently if a suitable partner is not identified.

The Indian government's Semiconductor Mission offers incentives to semiconductor fabrication units, assembly, testing, marking, and packaging (ATMP), as well as outsourced assembly and testing units (OSAT), with the aim of fostering semiconductor manufacturing in the country. Other companies, such as a joint venture between Vedanta and Taiwan's Foxconn and Singapore-based IGSS Ventures, have also applied for these incentives as part of India's ambitious semiconductor development initiative.

Courtesy by: The Economic Times