ISMC's India chip plan stalls after Tower-Intel deal in setback to Modi

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ISMC's India chip plan stalls after Tower-Intel deal in setback to Modi
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NEW DELHI/OAKLAND, California : A planned $3 billion semiconductor facility in India by chip consortium ISMC that counted Israeli chipmaker Tower as a tech partner has been stalled due to the company's ongoing takeover by Intel, three sources said, dashing India's chip making plans.A second mega $19.5 bil

NEW DELHI/OAKLAND, California : A planned $3 billion semiconductor facility in India by chip consortium ISMC that counted Israeli chipmaker Tower as a tech partner has been stalled due to the company's ongoing takeover by Intel, three sources said, dashing India's chip making plans.

India, which expects its semiconductor market to be worth $63 billion by 2026, last year received three applications to set up plants under a $10 billion incentive scheme. They were from the Vedanta-Foxconn JV; a global consortium ISMC which counts Tower Semiconductor as a tech partner; and from Singapore-based IGSS Ventures.

Talking about India's semiconductor ambitions, India's deputy IT minister Rajeev Chandrasekhar told Reuters in a May 19 interview ISMC"could not proceed" due to Intel acquiring Tower, and IGSS"wanted to re-submit " for incentives. The"two of them had to drop out," he said, without elaborating. Most of the world's chip output is limited to a few countries like Taiwan, and India is a late entrant. Amid much fanfare, in September, the Vedanta-Foxconn JV announced its chipmaking plans in Gujarat. Modi called the $19.5 billion plan"an important step" in boosting India's chipmaking ambitions.

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