[News] India Enters Chip War with USD 21 Billion Semiconductor Investment Proposals

2024-02-27 Semiconductors editor

According to a report from Bloomberg, sources reveal that Israeli firm Tower Semiconductor has proposed a USD 9 billion investment to establish a plant, while India’s Tata Group has proposed an USD 8 billion fab. Sources further indicate that both proposed locations for these projects are in the state of Gujarat.

Tower Semiconductor plans to establish a plant in India, which is expected to establish a foothold in emerging markets and move past the shadow of the failed Intel deal. While the company’s sales are far behind those of Intel and TSMC, it produces components for major clients like Broadcom and holds a significant position in rapidly growing fields like electric vehicles.

Sources cited in the report say that Tower Semiconductor hopes to expand its facility over the next decade, with the ultimate goal of producing 80,000 wafers per month. If approved by the Indian government, the plant could become India’s first semiconductor facility operated by a major player in the industry.

Previous reports from India’s media outlet, the Economic Times, have also indicated that India’s Tata group may collaborate with Taiwanese semiconductor foundries like UMC or PSMC to establish the first fab in India. Initially, they would produce mature process chips with a planned monthly capacity of 25,000 wafers. If successful, it would mark Taiwan’s semiconductor industry’s first venture into India.

Additionally, Japan’s Renesas Electronics is seeking to collaborate with CG Power and Industrial Solutions, a subsidiary of the Murugappa Group, to establish a chip packaging plant.

Semiconductors have become a significant geopolitical battleground, with the United States, Japan, and China investing heavily in domestic chip capacity. India’s plan to establish itself as a semiconductor manufacturing hub includes attracting overseas chipmakers’ investments to catch up and save on high import costs while bolstering the local smartphone manufacturing industry.

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(Photo credit: Tata Group)

Please note that this article cites information from Economic Daily News, Economic Times and Bloomberg.