India has the opportunity to make significant strides in semiconductor manufacturing as Israel's renowned semiconductor company, Tower, has proposed the establishment of a plant in the country with an investment of $8 billion. This initiative aligns with prime minister Narendra Modi's efforts to promote semiconductor manufacturing in india, evident in the government's announcement of a $10 billion scheme in december 2021.

According to reports, Tower has expressed interest in setting up a semiconductor plant in india and has submitted a proposal of $8 billion to the indian government, seeking incentives in return. The company plans to manufacture 65-nanometer and 40-nanometer chips in India.

A meeting between minister of State for IT rajeev Chandrasekhar, Tower Semiconductor CEO Russell C Ellwanger, and Israeli Ambassador Naor Gilan took place in october of the previous year. Discussions during this meeting centred around a potential semiconductor partnership between india and Tower Semiconductor.

Earlier in 2022, the international Semiconductor Consortium (ISC), of which Tower is a part, applied to join India's Semiconductor Scheme. However, uncertainties arose when Intel attempted to acquire Tower Semiconductor, leading the indian government to withhold approval of the application. The government was unsure whether to permit Tower Semiconductor's continued participation in the ISC post the Intel acquisition.

Tower Semiconductor specializes in providing high-value analogue semiconductor solutions, catering to various sectors, including automotive, medical, industrial, consumer, aerospace, and defense. The company's annual revenue exceeds $1 billion.

This development comes in the wake of American chipmaker Micron Technology's announcement in june of the previous year to establish an assembly and test facility in Gujarat, india, with an investment of $825 million, slated to commence operations by the end of 2024.