Another semiconductor company wants to invest in India? In recent years, many of the world's capital giants have set their sights on India, and recently another semiconductor company wants to enter the Indian market.
This company is from Israel's Tower Semiconductor, the company was established in 1993, and its main business is pure independent semiconductor manufacturing. The chips produced are used in mobile devices, automobiles and other fields, and it has factories not only in Israel, but also in the United States and Japan, and is the seventh largest semiconductor foundry in the world. In order to enhance its own strength, Intel once wanted to acquire Tower Semiconductor.
In recent years, we all know the fierce competition in the chip field, even Intel, as one of the chip giants, feels the pressure doubled. Therefore, in order to further enhance its production capacity and technological advantages, Intel wants to acquire other semiconductor companies.
At this time, of course, Tower Semiconductor has become a sweet spot in the eyes of Intel, and for its acquisition by Intel, Tower Semiconductor has not expressed a refusal attitude, it seems that the transaction seems to be very smooth, and both parties feel that it will be completed within a year.
But things were not as simple as they thought, and the deal was rejected by the Chinese side during the process. After Intel learned of China's attitude, it also made efforts to persuade Chinese authorities to approve their deal. For this reason, Intel CEO Kielsinger even made two special flights to China, but they still failed.
Eventually, the two parties terminated the deal, but according to the previous agreement, if the deal was terminated, Intel would need to give Tower Semiconductor 3$5.3 billion in termination fees. Not only did the acquisition fail, but it also had to bleed hemorrhage, which was a big loss for Intel.
So some people may wonder, why does Intel's acquisition of Tower Semiconductor need China's consent? According to China's Anti-Monopoly Law introduced in 2008, if the acquirer and the acquiree have a market in China and have sales of 400 million yuan and global sales of 10 billion yuan, they must be investigated by China's Anti-Monopoly Law.
Only after our Anti-Monopoly Law investigation and the approval of the relevant departments can the two parties continue to trade. Otherwise, it will not be able to sell in China, and Intel obviously does not want to lose the Chinese market compared to the acquisition of Tower Semiconductor, so in the end they gave up the deal.
Failed to be acquired by Intel, Tower Semiconductor also began to set its sights on India. After all, many companies are investing in India in a steady stream. According to the Indian Express, Tower Semiconductor will invest $8 billion to build a chip manufacturing plant in India, and the project is currently being evaluated in India.
Of course, Gaota Semiconductor has also put forward its own conditions for investment in India, and they hope to get some first-class incentives. If Tower Semiconductor's proposal is approved by India**, then they will be able to get 50% of the subsidy. This means that although Gouda Semiconductor said that it would invest $8 billion, in fact it only needed to invest $4 billion to complete, and the rest would be provided by India**.
For this project, the executives of Hightower Semiconductor have also traveled to India several times to meet with the Indian ** to discuss the matter. In addition to these subsidies, Tower Semiconductor hopes to produce 65nm and 40nm chips in India and use them in automotive and electronics applications.
India still attaches great importance to Tower Semiconductor, after all, India has always been ambitious and wants to become a global chip power. In 2021, India** announced a $10 billion chip incentive plan, and the subsidy that Tower Semiconductor wants to get comes from this plan, which does attract foundries such as Foxconn.
Although many people in China are not very optimistic about India, they think that they have many problems that have not yet been solved. But the fact that so many companies are willing to invest in India at least proves that they still believe that India has great potential after various analyses. Therefore, we must not underestimate India, after all, India's huge population base is there, even if the proportion is small, the number of high-end talents cannot be ignored.
But we don't have to worry too much about that. The United States does not want China's chip industry to rise, and it will not allow another powerful enemy to appear, so although American companies have invested a lot in India, the real core technology will definitely be retained.
Professionals have expressed a similar view that India has little competitiveness in the key aspects of chip technology. In terms of chip production, India almost has to start from scratch. And although there are many companies investing in India, whether these companies can stay for a long time is also a test for India. But no matter how India develops, it will not affect our own progress.
**10,000 Fans Incentive Plan