Israeli chipmaker Tower Semiconductor Ltd. (Nasdaq: TSEM; LEVEL:TSEM) and Adani Group plan to build a chip manufacturing plant in Taloja, Mumbai, according to a tweet by Devendra Fadnavis, deputy chief minister of the western Indian state of Maharashtra. Tower and Adani will invest 10 billion dollars in the project.
Fadnavis said the plant will eventually have a production capacity of 80,000 wafers per year, although it will produce 40,000 wafers per year in the first phase. A person involved in the planning told Bloomberg that the project will be built in three to five years and the chips will be used in drones, cars, smartphones and other mobility solutions.
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Located in Migdal Ha’Emek, Tower has been managed by CEO Russell Ellwanger for over 20 years. Earlier this year, Ellwanger told the Globe that India provides the largest grant of any country at 75% of construction costs for new chip factories, compared with 35% in the United States and just 9% in Israel.
In 2022, Intel announced that it was buying Tower for $5.4 billion, but in August 2023, the deal was canceled after Intel failed to get approval from the Chinese regulator. Tower shares rose 0.68% on the Nasdaq yesterday, giving it a market value of $4.589 billion. After the announcement of the joint venture with Adani, the stock price is 4.33% in premarket trading.
Globes, Israel business news – en.globes.co.il – published on September 6, 2024.
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