Tower’s plan for first Indian chip foundry likely to get nod today

The Cabinet is likely to approve on Thursday incentives for Israeli semiconductor company Tower’s proposal for a chip fabrication unit, said people with knowledge of the matter. This will pave the way for India’s first pure-play chip foundry, they said.

The project is pegged at $9-10 billion, of which 50% will be subsidised by the Centre under the Indian Semiconductor Mission (ISM). States provide an additional 15-25% subsidy.

The outsourced assembly and testing (OSAT) unit proposals of the HCL Group-Foxconn Group joint venture and the Tata group are also likely to get Cabinet approval, said the people cited above.