Israel’s Tower Semiconductor has eagerly awaited approval for its chip project, which is now expected to move forward following the recent elections. This development comes as a significant milestone for the semiconductor industry in Israel, showcasing the country’s commitment to technological advancement and innovation. With this approval, Tower Semiconductor is poised to make substantial contributions to the global chip market and solidify its position as a key player in the industry. Stay tuned for more updates on this exciting development!
Tower Semiconductor 2024 Project Update
Tower Semiconductor’s project is presently in the evaluation stage. If approved, companies are eligible for a 50% government subsidy on the project cost.
Tower Semiconductor Project Budget
Israel-based Tower Semiconductor’s $11-billion (Rs 91,000-crore) fabrication project has faced delays in its approval process, with official sources indicating that it may only be approved post the general elections. The project holds significant economic importance and is eagerly awaited by stakeholders for its potential impact on the industry and economy. Once approved, the project is expected to bring advanced technological capabilities to the region, create employment opportunities, and boost the semiconductor sector’s growth. The delay underscores the complexities involved in large-scale projects and highlights the need for thorough evaluation and decision-making processes in such significant investments.
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Ministry of Electronics Cabinet approval to increase the current incentive limit
The Ministry of Electronics and IT (Meity) needs Cabinet approval to increase the current incentive limit of Rs 76,000 crore for domestic semiconductor production. The government has approved four chip projects, totaling Rs 60,000 crore in incentives.
Tower Semiconductor’s Project Final Stage
Tower Semiconductor’s project is presently in the evaluation stage. Once approved, companies are eligible for a 50% government subsidy on the project cost. Additionally, state governments where the projects are located have the freedom to provide additional subsidies as desired.
Total Project cost for Tower’s project
Officials stated that the government would need to cover approximately Rs 45,000 crore of the total project cost for Tower’s project. The subsidy kitty currently holds only Rs 16,000 crore. While subsidies for approved projects are distributed over several years, officials recommended requesting an increase in the outlay before approving the project.
Tower Proposal Reviewing
“The Tower proposal was not presented to the Cabinet today (February 29). The government is currently reviewing this crucial proposal with the aim of securing approval,” stated Rajeev Chandrasekhar, the minister of state for electronics and IT, during a recent media briefing. “This particular proposal is more intricate as it involves a longer build-out period and entails the construction of a significantly larger fab. Additionally, it represents one of the limited foundry-led investments entering the country,” Chandrasekhar elaborated.
Tata-PSMC Fab Project
Tower is planning to establish a fabrication unit independently in the country, aiming for a substantial capacity of 80,000 wafers per month, unlike a joint venture model. Potential partnerships will be considered by the company in the future. Ajai Chowdhury, chairman of EPIC Foundation and co-founder of HCL, mentioned the necessity for two silicon fabs of higher nodes in the current plan, one of which is the Tata-PSMC fab project. Additionally, one or two more ATMP plants may be required.
India Semiconductor Mission Expressions
Chowdhury, an advisor to the India Semiconductor Mission (ISM), expressed that the semiconductor industry is a long-term vision, indicating forthcoming funding surpassing Rs 76,000 crore. With Micron’s approved project worth Rs 22,500 crore, total project value to date amounts to Rs 1.49 trillion. Recently, the government sanctioned Tata Electronics and PSMC’s semiconductor fabrication proposal worth Rs 91,000 crore, the first of its kind in the country.
ATMP Project Worth
Another significant project approved was by the Tata Group – the ATMP project worth Rs 27,000 crore by Tata Semiconductor Assembly and Test. The third project, involving an investment of Rs 7,600 crore, was a collaboration between CG Power, Renesas Electronics from Japan, and Stars Microelectronics from Thailand. The inaugural fab project, focusing on manufacturing high compute chips using 28 nm technology, will be established in Dholera, Gujarat, with construction set to commence within the next 100 days. The fab is designed to produce 50,000 wafers per month and generate 300 crore chips annually, serving industries such as high-performance computing, electric vehicles, defense, and consumer electronics, among others.
Summary
By gaining approval for Tower Semiconductor’s chip project, Israel is set to witness a significant technological advancement that will propel its position in the global market. This development not only signifies progress in the semiconductor industry but also underscores Israel’s commitment to innovation and growth. With this project on the horizon, the future looks bright for both Tower Semiconductor and Israel as they continue to make strides towards technological excellence.