Tower Semiconductor, an Israeli chip manufacturing company, has proposed an $8 billion investment to construct a chip manufacturing facility in India.
The company aims to produce chips of 65 nanometres and 40 nanometres in India, reported the Indian Express.
The move would significantly advance India's aspirations in chip production, marking a pivotal step forward in the nation's technological ambitions.
The government is currently evaluating Tower's proposal and aims to approve it before the commencement of this year's general elections, prior to the implementation of the model code of conduct.
If the government approves Tower's proposal, it would mark the first time a semiconductor company with significant manufacturing experience joins India's $10 billion chip manufacturing initiative.
Under the scheme, successful applicants are promised a 50 per cent subsidy on capital expenditure. This implies that if Tower's proposed plant costs $8 billion, the government would contribute $4 billion toward its construction.
Additionally, the state where the chip foundry is located may offer further incentives to the company.
Such incentives aim to attract and foster high-tech industries within India.
Tower had earlier applied to the scheme to establish a $3 billion plant in Karnataka, partnering with the international consortium ISMC.
The plan however was scuppered because of Tower's impending merger with Intel. Last August, Intel called off its plan to acquire Tower Semiconductor for $5.4 billion due to regulatory concerns.
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