India's domestic chip plan has suffered another setback, with news that Gaota Semiconductor's $3 billion project has been shelved indefinitely.
CTOnews.com, June 1 (Xinhua)-- ISMC, a joint venture led by Israeli chipmaker Gaota Semiconductor, had planned to build a semiconductor base in southern India, Reuters reported. However, the project was shelved after Intel announced its acquisition of Gaota Semiconductor, which once again thwarted India's domestic semiconductor plans.
▲ Touyuan: high Tower Semiconductor reported that after the Indian government set up a $10 billion subsidy fund (CTOnews.com Note: about 71.1 billion yuan currently), a total of three semiconductor manufacturers applied for subsidies, namely, a joint venture between Hon Hai and Vedanta, ISMC led by Israel's foundry foundry Gaota Semiconductor, and Singapore venture capital firm IGSS Ventures.
ISMC had planned to invest $3 billion (currently about 21.33 billion yuan) to build semiconductor manufacturing facilities in southern India, but has been shelved indefinitely, Reuters said, citing people familiar with the matter. Intel bought Gaota Semiconductor for $5.4 billion (currently about 38.394 billion yuan), which is still awaiting approval from multinational regulators. As a result, the leaders of Intel and Gaota Semiconductor both told the Indian side that they could not continue to sign binding agreements.
CTOnews.com reported earlier today that the Indian government is prepared to reject Hon Hai and Vedanta's application for a subsidy to build a 28nm wafer fab. The shelving of the high tower semiconductor project represents another major blow to India's ambitious homegrown semiconductor plans.
