Tower Semiconductor, the Israeli semiconductor giant, has reignited its bid to establish chip fabrication units in India, submitting proposals for manufacturing 65 nm and 40 nm chips. This initiative aligns with the Indian government’s recent semiconductor policy, aiming to drastically reduce the setup costs for chip manufacturing units by up to 70%.
The government’s policy, designed to offer fiscal support based on chip sizes, has triggered mixed reactions within the industry. While some praise its potential to significantly cut down manufacturing expenses, others voice concerns that the tiered support might discourage production of larger-sized chips.
Despite these debates, Tower Semiconductor’s commitment to expansion persists, despite legal disputes with former Partner Next Orbit Ventures complicating its resubmitted proposal. Intel’s announcement to produce chips for Tower’s clients at its Fab 11X in Rio Rancho, New Mexico, underlines the company’s proactive stance toward growth and collaboration.
The Indian government’s notification of the $10-billion semiconductor policy, with a 45-day proposal window from January 1, 2022, aims to bolster the domestic semiconductor industry, aiming to reduce reliance on imports.
Tower Semiconductor’s renewed proposal signals a positive response to the government’s initiatives, marking a pivotal step in the country’s journey towards establishing a robust semiconductor manufacturing ecosystem. With the industry evolving rapidly, these developments draw keen attention from stakeholders and market observers alike, poised to shape the future of India’s semiconductor landscape.
