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Israel-based chip manufacturing company, Tower Semiconductor has made a second bid to set up its semiconductor fabrication plant in India under the Modi government’s Chip Incentive Scheme, making it the first company to set up a manufacturing unit under India’s $10 billion Chip Manufacturing scheme.
There is growing demand for semiconductors in India in various sectors electronics, automotive, and telecommunications. Establishing semiconductor plants in India caters to the demand reducing the cost and dependency on importing the chips. Reducing dependency on exports also contributes to India’s interests in self-dependency and strategic independence ensuring a perpetual supply by eliminating vulnerability to supply-chain disruptions.
The deal can bring in more investments in technology manufacture of cutting-edge technologies making India a prominent manufacturing hub in the global south.
Mukesh Ambani’s Reliance Industries is reportedly considering acquiring Israel-based tower semiconductors making it a significant feat for Reliance Industries to step into semiconductor manufacturing. It will also boost India’s awaited domestic semiconductor industry simultaneously generating employment in the country.
The deal also takes Indian-Israeli technological co-operation forward. The deal has currently taken a slow pace due to the Israel-Palestine tensions.