Tower Semiconductor, world leader in chip foundry, wants government to finalize project, sops, Telecom News, ET Telecom
The company said any government delay would mean it could not “remain active in the project for the near future.”
Tower Semiconductor is the technology partner of a consortium launched by Abu Dhabi-based Next Orbit Ventures that has offered a $ 3 billion 65-nanometer analog semiconductor manufacturing facility in Dholera, an industrial hub in Gujarat.
ET saw a copy of the letter, which was also addressed to Minister of Finance Nirmala Sitharaman, Minister of Electronics and IT Ashwini Vaishnaw, and Minister of Trade and Industry Piyush Goyal.
Goyal is also leading a government panel on high-tech manufacturing.
Sources said Vaishnaw, who took office as IT minister nearly two months ago, organized a call with the consortium last week to understand various issues and ensure support.
“We are disappointed and demoralized that despite the discussion at the highest level G2G for the proposed semiconductor plant … there is no idea where we are headed,” the letter says. .
There has been no clear timetable, no commitment or transparency from the government, he added.
“We kindly ask you to express and convey the limitations of the GoI (Government of India) and its stakeholders without further delay, otherwise we express our inability to remain active in the project in the near future,” he said. .
Tower Semiconductor did not respond to questions from ET.
The consortium also held a meeting with Goyal earlier this year.
The Department of Electronics and Informatics has reportedly received applications from 20 leading companies after launching the EoI to gauge the interest of companies keen to set up semiconductor factories in the country.
The semiconductor industry has argued that following a global chip supply shortage and countries like the United States hand out huge subsidies to attract semiconductor manufacturers, the government should act quickly on his plans.
The government is currently in the process of issuing full requests for proposals, after which it will decide on the amount of the grant.
âIsrael, as India’s strategic partner in many areas, would like to participate in the project to enable India to realize its Digital Safe India dream given the latest developments in its neighborhoodâ¦â the letter said.
Ajay Jalan, co-founder and chief executive of Next Orbit Ventures, said the company could not comment on behalf of its technology partners.
âBut yes, we, as Next Orbit Ventures and our partner in Gujarat State Government, have consistently asked all key Indian ministries, including the Honorable Prime Minister, since 2017 and now following the declaration of interest, to expedite the decision on semiconductor incentives to begin execution of our project, “Jalan said in an email, responding to questions from ET.
Each year of delay increases not only the cost of the project but also the country’s vulnerabilities in terms of national security and competitiveness, he said.
It is also impacting the confidence of its global partners in technology and investment in India’s decision-making timelines, Jalan added.
“The Next Orbit team is again in Delhi this week making similar demands to decision makers across the country as the current EOI has already taken nine months and if the RFP is called, at least another 9 months will delay the process,” did he declare.