Israeli chip maker Tour Semiconductor Ltd. (Nasdaq: TSEM; TASER:TSEM) and 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.
Fadnavis said the plant would eventually have a production capacity of 80,000 wafers per year, although it would initially produce 40,000 wafers per year. The project will be built over a period of 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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Based in Migdal Ha’Emek, Tower has been run for more than 20 years by CEO Russell Ellwanger. Earlier this year, Ellwanger told Globes that India provides the largest subsidy of any country, accounting for 75% of the cost of building new chip factories, compared with 35% in the United States and just 9% in Israel.
In 2022, Intel had announced the acquisition of Tower for $5.4 billion, but in August 2023, the deal was canceled after Intel failed to obtain approval from the Chinese regulator. Tower’s stock price rose 0.68% on Nasdaq yesterday, giving it a market capitalization of $4.589 billion. The stock price is up 4.33% in pre-market trading after the announcement of the joint venture with Adani.
Published by Globes, Israeli business news – fr.globes.co.il – September 6, 2024.
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