India plans to develop semiconductor ecosystem

In September 2021, Israel-based chip maker Tower Semiconductor threatened to pull out of plans to set up a factory in India amid turmoil as the government did not clarify its policy. The company has been in talks with the government for several years. In a letter, Tower Semiconductor called on Prime Minister Narendra Modi to intervene to speed up the government's proposal for chip manufacturing. He also sent a letter to the government six months after he started inviting chip makers to India. The company  also said that government delays meant that it could not "continue to be actively involved in the project for the foreseeable future." The company was a technical partner of a consortium formed by Abu Dhabi-based Next Orbit Ventures to build a chip fab in Dholera, Gujarat. About three months later, the government announced a $ 10 billion production-linked incentive to attract semiconductor and display makers. This seems to bear fruit. Over the last decade and a half, India has made some unsuccessful attempts to attract chip makers. The government received $ 20.5 billion from five companies to set up a semiconductor and display manufacturing unit. Vedanta jumped first. The joint venture between Vedanta and Foxconn, a consortium led by  Next Orbit Ventures in Abu Dhabi and IGSS Ventures in Singapore, is the three companies that have submitted applications for semiconductor equipment.