HIGHLIGHTS
- Intel, the world's largest chipmaker, has revealed plans to purchase Tower.
- Over 1,500 direct employment are planned to be created by the unit.
- The country's first semiconductor plant might create 10,000 indirect employment.
The state government of India's southern Karnataka state announced on Sunday that the international semiconductor consortium ISMC will invest $3 billion (approximately Rs. 22,940 crore) in the establishment of a chip-making factory.
ISMC is a collaboration between Next Orbit Ventures in Abu Dhabi and Tower Semiconductor in Israel. Intel, the world's largest chipmaker, has revealed plans to purchase Tower.
According to a tweet from the state's investment promotion office, India's first semiconductor fabrication plant would create more than 1,500 direct employment and 10,000 indirect ones.
ISMC and Indian conglomerate Vedanta have filed for Prime Minister Narendra Modi's $10 billion (about Rs. 76,473 crore) incentive scheme to encourage corporations to establish semiconductor and display operations in India, the government's next big bet on electronics production.
Vedanta told Reuters on Saturday that it was in "advanced conversations" with Gujarat, Maharashtra, and Telangana in west India, as well as Telangana in the south, to select a location by mid-May. It intends to invest $20 billion (about Rs. 1,52,973 crore) in its semiconductor and display efforts.
Modi and his IT ministers detailed plans for investment incentives in the industry on Friday, saying they want India to become a vital participant in a global semiconductor market controlled by Taiwan and a few other nations. According to the government, India's semiconductor industry would increase to $63 billion (approximately Rs. 4,81,865) by 2026, up from $15 billion (about Rs. 1,14,729) in 2020.
