tower semiconductor proposal: Israel’s chipmaker Tower resubmits proposal to set up 65 nm, 40 nm chip fab

The company, however, is also facing legal action from its erstwhile joint venture partner Abu Dhabi-based Next Orbit Ventures which is considering suing Tower Semiconductors for going ahead and submitting a fresh proposal with a new partner.

Ajay Jalan-headed Next Orbit Ventures is likely to challenge the new proposal claiming a breach of terms of the contract that Tower Semiconductors had with it, a source said.

The new partner in Tower Semiconductors’ proposal could be the BC Jindal group, a major manufacturer of packaging and labelling products, another source said.

Senior executives at the BC Jindal group confirmed that they were working on a semiconductor proposal but did not share more details. Tower Semiconductors and the BC Jindal Group did not respond to detailed emails seeking the details of their proposed semiconductor fabrication unit. The proposal marks Tower’s second attempt at establishing a semiconductor chip fabrication unit in India.

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The Israeli company’s first attempt at entering the Indian market made no headway despite Tower firming up a joint venture with ISMC (International Semiconductor Consortium) Analog Fab Private to set up a chip fabrication unit with a proposed investment of $3 billion. Sources told ET that Next Orbit Ventures is seeking legal counsel on its options since it has been excluded from the fresh proposal made by Tower.

“There was an NDA signed with the BC Jindal group which was part of ISMC. And there was an agreement with Tower as well that if they set up a fab in India, Next Orbit Ventures will be their partner,” the person said. “The lawyers from both sides are in discussion currently. Next Orbit Ventures is seeking both injunctions on the fresh partnership and is also seeking damages since it believes it had made significant efforts towards cementing Tower’s fab ambitions in India,” added the person.

While Tower and BC Jindal group did not respond to ET’s queries on the matter, Next Orbit Ventures’ Jalan said he had “no comments” on the matter.

ET had reported on October 31 that Tower is seeking guidance from the Indian government on the best possible way to establish a fabrication facility in the country by the end of this financial year.

The company, however, is also facing legal action from its erstwhile joint venture partner Abu Dhabi-based Next Orbit Ventures which is considering suing Tower Semiconductors for going ahead and submitting a fresh proposal with a new partner.

Ajay Jalan-headed Next Orbit Ventures is likely to challenge the new proposal claiming a breach of terms of the contract that Tower Semiconductors had with it, a source said.

The new partner in Tower Semiconductors’ proposal could be the BC Jindal group, a major manufacturer of packaging and labelling products, another source said.

Senior executives at the BC Jindal group confirmed that they were working on a semiconductor proposal but did not share more details. Tower Semiconductors and the BC Jindal Group did not respond to detailed emails seeking the details of their proposed semiconductor fabrication unit. The proposal marks Tower’s second attempt at establishing a semiconductor chip fabrication unit in India.

ETtech

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The Israeli company’s first attempt at entering the Indian market made no headway despite Tower firming up a joint venture with ISMC (International Semiconductor Consortium) Analog Fab Private to set up a chip fabrication unit with a proposed investment of $3 billion. Sources told ET that Next Orbit Ventures is seeking legal counsel on its options since it has been excluded from the fresh proposal made by Tower.

“There was an NDA signed with the BC Jindal group which was part of ISMC. And there was an agreement with Tower as well that if they set up a fab in India, Next Orbit Ventures will be their partner,” the person said. “The lawyers from both sides are in discussion currently. Next Orbit Ventures is seeking both injunctions on the fresh partnership and is also seeking damages since it believes it had made significant efforts towards cementing Tower’s fab ambitions in India,” added the person.

While Tower and BC Jindal group did not respond to ET’s queries on the matter, Next Orbit Ventures’ Jalan said he had “no comments” on the matter.

ET had reported on October 31 that Tower is seeking guidance from the Indian government on the best possible way to establish a fabrication facility in the country by the end of this financial year.