Israel's Tower proposes $8 bln chip plant in India

[pva]

Israel's Tower Semiconductor (TSEM.TA) has submitted a proposal to India's government to build an $8 billion chipmaking facility in the South Asian nation, national daily Indian Express reported on Sunday.
Tower, seeking government incentives for its plan, is looking to manufacture 65 nanometre and 40 nanometre chips in India, the report said.
The company and India's IT ministry did not immediately respond to requests for comment.

Chip manufacturing is a key plank of Modi's business agenda, but initial bids to offer $10 billion in incentives to the industry have floundered, with some proposals stalled or cancelled.


Reporting by Munsif Vengattil in Bengaluru; Editing by Sonali Paulmus

 

[FuturePAF]

seeking government incentives for its plan…
India's IT ministry did not immediately respond to requests for comment…but initial bids to offer $10 billion in incentives to the industry have floundered, with some proposals stalled or cancelled

Aka they want market share and want india to pay for their company to set up there as well. Basically India told them No, by saying nothing. Always read the fine print.

 

[pva]

Aka they want market share and want india to pay for their company to set up there as well. Basically India told them No, by saying nothing. Always read the fine print.

Yeah, thats why the title says proposes. Its also why I posted the content instead of just linking the article. They are interested because the govt put up $10 Billion incentives for setting up the industries, which admittedly haven't had the expected results yet.

The company and India's IT ministry did not immediately respond to requests for comment.

The report is new so the lack of immediate response shouldn't be interpreted as a firm NO.

 

[FuturePAF]

Yeah, thats why the title says proposes. Its also why I posted the content instead of just linking the article. They are interested because the govt put up $10 Billion incentives for setting up the industries, which admittedly haven't had the expected results yet.


The report is new so the lack of immediate response shouldn't be interpreted as a firm NO.

I was just being hyperbolic with the NO, but seriously $10 billion in incentives to give away market share. What happened to Indian R&D?

 

[Rego]

I was just being hyperbolic with the NO, but seriously $10 billion in incentives to give away market share. What happened to Indian R&D?

It's not a zero sum game. Tower can build it's own market, Indian companies can build their own.

 

[nahtanbob]

Aka they want market share and want india to pay for their company to set up there as well. Basically India told them No, by saying nothing. Always read the fine print.

Tower Semiconductor is a 2nd tier player. They want the Indian government $$$. It is upto India to evaluate the proposal and decide

 

[onlinpunit]

Aka they want market share and want india to pay for their company to set up there as well. Basically India told them No, by saying nothing. Always read the fine print.

It's too early to speculate.

 

[onlinpunit]

I was just being hyperbolic with the NO, but seriously $10 billion in incentives to give away market share. What happened to Indian R&D?

Chip industry in india is almost nonexistent. So an investment proposal with merit is always welcome.

 

[FuturePAF]

Chip industry in india is almost nonexistent. So an investment proposal with merit is always welcome.

The issue was and about the terms of the incentive structure. You might think it’s weird for me to ask so closely but in about 10 years when our copy paste babus get around to proposing the same incentive structure, I want there to be some details so we know how good or bad of an idea it actually is.

 

[pikku]

The issue was and about the terms of the incentive structure. You might think it’s weird for me to ask so closely but in about 10 years when our copy paste babus get around to proposing the same incentive structure, I want there to be some details so we know how good or bad of an idea it actually is.

There are no bad investments, even failed investments are good investments. There is a difference between investments and loans, I don't expect Pakistanis to understand this.

 

[FuturePAF]

There are no bad investments, even failed investments are good investments.

Giving $8 billion away and then the company fails to deliver on its promises wastes the opportunity that could have been extended to a better qualified company.

 

[pikku]

Giving $8 billion away and then the company fails to deliver on its promises wastes the opportunity that could have been extended to a better qualified company.

This company was about to be acquired by Intel until China striked down the deal. Israeli companies have very small failure rate. Tower is already an established company with proven technological records.

 

[nahtanbob]

The issue was and about the terms of the incentive structure. You might think it’s weird for me to ask so closely but in about 10 years when our copy paste babus get around to proposing the same incentive structure, I want there to be some details so we know how good or bad of an idea it actually is.

It is not clear to me what India wants the incentives to produce. India cannot gave a private company market share like you claimed. The market place decides that. Tower Semiconductor is more credible player than Foxconn and other entities bidding for these subsidies

 

[pikku]

It is not clear to me what India wants the incentives to produce. India cannot gave a private company market share like you claimed. The market place decides that. Tower Semiconductor is more credible player than Foxconn and other entities bidding for these subsidies

Micron has already started construction in Gujarat, next Tower and then other players including TSMC will be roped in. Initially mature nodes and packaging of advanced nodes will be done, this will create a skill base.

 

[nahtanbob]

Micron has already started construction in Gujarat, next Tower and then other players including TSMC will be roped in. Initially mature nodes and packaging of advanced nodes will be done, this will create a skill base.

Micron, Tower, TSMC are proven players with strong track records in semiconductor manufacturing. It is not clear what they will make in India.