Union government seeks more details on Israeli Tower Semiconductor proposal
- In Reports
- 12:58 PM, Sep 10, 2024
- Myind Staff
The Union government has requested additional information regarding a proposal from Israeli firm Tower Semiconductor to establish a semiconductor unit in India, according to Akash Tripathi, CEO of the India Semiconductor Mission (ISM). Tripathi confirmed that the proposal is currently under appraisal and that the company has been asked to provide more details.
“Tower has submitted a proposal but they have to provide a detailed proposal. As they provide details, we will examine those things. That is under appraisal. We have sought information from them,” Tripathi said during a press conference on Monday.
This statement follows an announcement made by Maharashtra Deputy Chief Minister Devendra Fadnavis on September 5. Fadnavis revealed that the state cabinet had approved a ₹83,947 crore (US$10 billion) semiconductor unit by Tower Semiconductor and Adani Group in Panvel. The BJP leader also claimed that the project would generate 5,000 new jobs.
On Monday, Tripathi did not confirm whether Adani had also submitted a proposal or if Tower had partnered with Adani. A senior government official told HT that Tower’s proposal is still pending approval from the Centre. Neither Tower Semiconductor, Adani Group, nor the Centre has acknowledged Fadnavis’s statement. The Maharashtra government's announcement has been perceived as a strategic move ahead of the upcoming state assembly elections.
Additionally, the Cabinet approval for the Kaynes Semiconductor unit in Gujarat, which was granted on September 2, was delayed due to the recent Lok Sabha elections, according to the senior official who spoke anonymously.
Tripathi also mentioned that 20 more proposals are under consideration with the India Semiconductor Mission, covering various areas such as display fabs, compound semiconductors, and OSATs (Outsourced Semiconductor Assembly and Testing). “We hope that in future also we will get more investment in this sector. We need to look at developing the whole ecosystem for semiconductors. Only fabs will not suffice. Only OSATs will not suffice. We have this inkling that we need to support all the ecosystem components,” he stated.
Each proposal undergoes a “thorough appraisal process” at multiple levels, Tripathi explained. Proposals are evaluated based on factors such as their probability of success, technology partners, technology used, financial model, financial viability, and potential customer base.
To date, the Centre has approved five semiconductor unit proposals with a combined investment of ₹1,52,307 crore (US$18.15 billion). One of these, CG Power’s ATMP unit in Sanand, Gujarat, in partnership with Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics, with an investment of ₹7,600 crore, is set to begin chip production by the second quarter of 2026.
Tripathi further noted that the government plans to support the semiconductor industry for at least the next 10 years to help it mature. “Out of the funds we had allocated, a lot of it has been committed [to the five projects] so we need to expand and we are working on it. We have this vision of supporting this industry for at least 10 more years,” he said. Even after the industry matures, the government will continue to engage with it, though the “nature of engagement may differ.”
The Centre is also working on consolidating incentives for semiconductor ecosystem components under the Semicon India scheme. Previously, support for semiconductor manufacturing components was provided through the Scheme for the Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), which concluded on March 31, 2024.
Image source: HT
Comments