Israeli Tower proposes $8 billion chip factory in India

© Reuters. FILE PHOTO: A semiconductor chip is visible on a printed circuit board in this illustrated photo taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo

BENGALURU (Reuters) – Israel Tower Semiconductor (NASDAQ:) has submitted a proposal to the Indian government to build an $8 billion chip manufacturing facility in the South Asian country, national daily Indian Express reported on Sunday.

Tower, which is seeking government incentives for the plan, plans to manufacture 65-nanometer and 40-nanometer 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 major plank of Modi’s business agenda, but an initial bid to provide $10 billion in incentives to the industry failed, with some proposals delayed or canceled.