If Tower’s proposal is accepted by the government, it will be the first semiconductor company with real fabrication pedigree to join India’s $10 billion chip manufacturing initiative. Tower is looking to manufacture 65 nanometer and 40 nanometer chips in India that will be used across sectors such as automotive and wearables.
In October 2023, India’s electronics minister met Tower CEO Russel C Ellwanger to discuss a partnership in chip manufacturing. If approved, this will boost India’s ambitions to build domestic chip fabrication. Under India’s $10 billion outlay for chip manufacturing, the government offers 50% capital expenditure subsidy to approved applicants.
Earlier, Tower had planned a $3 billion fabrication plant in the state of Karnataka with International semiconductor consortium ISMC but the plan was halted due to Tower’s merger with Intel.
Separately, Mumbai-headquartered Power (CG Power) entered into a joint venture agreement with Renesas Electronics America and Thailand-based electronic parts maker Stars Microelectronics to set up a $222 million semiconductor assembly and testing plant in India. CG Power will own the majority 92.34 per cent stake, while Renesas and Stars will hold 6.76 per cent and 0.9 per cent stakes, respectively.
Setting up chip manufacturing in the country has become a priority for India after supply chain disruptions increased focus on semiconductor self-reliance.
