Israeli chipmaker Tower Semiconductor Co., Ltd. (NASDAQ: TSEM; level:TSEMTower and the Adani Group are planning to build a chip manufacturing plant in the Mumbai suburb of Taloja, according to a tweet from Devendra Fadnavis, deputy chief minister of the western Indian state of Maharashtra. Tower and Adani will invest $10 billion in the project.
The plant will eventually have a production capacity of 80,000 chips a year, though it will initially produce 40,000 chips a year, Fadnavis said. The project will be built over three to five years and the chips will be used in drones, cars, smartphones and other mobility solutions, a person involved in the planning told Bloomberg.
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“I’m excited to write the next chapter of Tower.”
Tower is based in Migdal HaEmek and has been run by CEO Russell Ellwanger for more than 20 years. Earlier this year, Ellwanger told Globes that India is providing the largest grant of any country, covering 75 percent of the cost of building new chip factories, compared with about 35 percent in the United States and just 9 percent in Israel.
In 2022, Intel announced it would acquire Tower for $5.4 billion, but in August 2023 the deal was canceled after Intel failed to secure approval from Chinese regulators. Tower shares rose 0.68% on the Nasdaq yesterday, giving it a market cap of $4.589 billion. The stock was up 4.33% in premarket trading after the announcement of the joint venture with Adani.
This article was published in Globes, Israeli Business News – en.globes.co.il – on September 6, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.