Tower JV signs agreement to build Indian wafer fab

Business news |
By Peter Clarke

A previously stalled plan to build a 65nm analog wafer fab in India involving foundry Tower Semiconductor Ltd. is moving forward again with Mysuru, Karnataka, selected as the location for the $3 billion facility.

A joint venture between Tower (Migdal Haemek, Israel) and Abu Dhabi based Next Orbit Ventures called Indian Semiconductor Manufacturing Co. (ISMC) has requested 150 acres of land in Mysuru’s Kochanahalli Industrial area. The fab is expected to create 1,500 direct jobs and 10,000 indirect jobs. Representatives of ISMC and the Karnataka government have signed a memorandum of understanding.

Tower has been in discussions with Next Orbit Ventures when there was a plan to finance three wafer fabs in India was floated (see VC wants to reboot Indian wafer fab plans). In recent weeks Tower has agreed to be acquired by leading chipmaker Intel Corp. (see Intel set to buy foundry Tower for $5.4 billion).

The JV has applied for a grant under  the central Indian government’s $10 billion chip incentive scheme (see India details wafer fab subsidy scheme favoring 28nm). Under the production-linked incentive scheme the central and state governments will provide up to 50 percent of the project cost for multiple wafer fabs and display manufacturing facilities.

That makes two

ISMC joins a similar joint venture between Vedanta and Foxconn (see India’s Vedanta budgets $15 billion for electronics entry) that is reportedly choosing between Gujurat, Maharashtra and Telangana for the location of its fab by mid-May.

Karnataka Chief Minister, Basavaraj Bommai, said: “This MoU is a significant agreement amid the competition among various states to attract semiconductor fabs. Karnataka understands that it’s not just the fiscal incentives that matter but the availability of a conducive ecosystem and overall ease in operations are also important. We have one of the best infrastructures in the country and an abundant skilled talent pool.”

Indian authorities are also reportedly in discussions with Globalfoundries and TSMC.

Related links and articles:

India lobbies Intel, Globalfoundries, TSMC for fabs

Intel set to buy foundry Tower for $5.4 billion

Indian analog wafer fab plan stuck in neutral

VC wants to reboot Indian wafer fab plans

India will get chip industry, says Tower CEO

India details wafer fab subsidy scheme favoring 28nm

India’s Vedanta budgets $15 billion for electronics entry

Report: Pakistan asks China to help with chip ambitions

Report: India plans $10 billion semiconductor subsidy

India asks Taiwan to include wafer fab in trade deal

Tata plans to make semiconductors in India




Linked Articles