In an attempt to capitalise on the $10 billion dollar incentives offered by the Indian government, Israeli semiconductor manufacturing company Tower Semiconductors has pledged to invest around $8 billion in India to build a chip-manufacturing facility.
Semiconductor manufacturing and assembly has been the key area of focus in business for the Modi government and for that reason, they announced a $10 billion dollar incentive plan in December 2021. After this, many companies have shown interest in setting up their semiconductor manufacturing facilities in India, Tower Semiconductor being one of them.
The investment plans were finalised after a meeting was held between the minister of state for IT, Rajeev Chandrashekhar and the CEO of Tower Semiconductor, Russel C Ellwanger in October 2023. According to Chandrashekhar, the meeting was also attended by Israel’s ambassador to India, and they discussed the India-Tower relationship in semiconductor manufacturing.
Many other semiconductor manufacturing companies have recently shown interest in investing in India. Taiwanese semiconductor manufacturing company and the manufacturer of the iPhone, Foxconn also pledged to invest $1.67 billion in India by investing in a chip manufacturing facility in India.
Moreover, another US-based chip-making company, Micron Technology, announced in June last year that they would invest around $825 million to set up a new assembly and test facility in Gujarat. The facility is said to be functional by June 2024, and the first chips from the plant will start coming out in December 2021.
