Israeli chipmaker Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE:TSEM) and Adani Group plan to build a chip production plant in the Mumbai suburb of Taloja, according to a tweet by Devendra Fadnavis, deputy chief minister of the western Indian state of Maharashtra. Tower and Adani will invest $10 billion in the project.
Fadnavis posted that the plant would eventually have a production capacity of 80,000 wafers annually, although in the first phase it would produce 40,000 wafers annually. 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."
Based in Migdal Ha'Emek, Tower has been managed by CEO Russell Ellwanger for over 20 years. Earlier this year Ellwanger told "Globes" that India gives the biggest grant of any country, worth 75% of the construction costs of building new chip plants, compared with 35% in the US and just 9% in Israel.
In 2022 Intel announced it was acquiring Tower for $5.4 billion but in August 2023 the deal was canceled after Intel was unable to receive approval from the Chinese regulator. Tower's share price rose 0.68% on Nasdaq yesterday, giving a market cap of $4.589 billion. The share price is 4.33% in premarket trading after the announcement of the joint venture with Adani.
Published by Globes, Israel business news - en.globes.co.il - on September 6, 2024.
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