Tower Semiconductor wants to build $8 billion chip factory in India

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Israeli chipmaker Tower Semiconductor has submitted a proposal for a new chip factory to the Indian government. This was reported by news medium The Indian Express. The construction of the factory would cost eight billion dollars.

Tower Semiconductor wants to produce 45nm and 60nm chips in India, according to The Indian Express. These chips would be intended for use in cars and wearables, among other things. According to the daily, the Indian government is currently assessing the proposal. The government would like to approve the proposal before elections later this year. Those elections are expected between April and May.

If the factory is built, Tower will become the first chipmaker to participate in a recent Indian government chip manufacturing program. The country wants to invest ten billion dollars in its chip sector in the coming years, including by subsidizing fifty percent of the costs for new chip factories. Under the program, Tower would receive a subsidy of four billion dollars from the Indian government.

Tower is an Israeli chipmaker that mainly focuses on specialty chips using relatively old processes. Tower produces 150mm, 200mm and 300mm wafers for automotive chips, image sensors and power management chips, among others. The chip manufacturer had intended to be taken over by the American Intel, but that deal fell through because approval from the Chinese competition regulator was not forthcoming.