To have or not to have a fab in India

BANGALORE, India – Several weeks back, a Palo Alto-based venture capitalist specializing in semiconductors said partnering with Israel rather than with U.S. or Taiwanese companies would be a great idea.

Whether or not the investor was aware of Tower Semiconductors’ plans for a 300-mm fab in India is now a moot point.

According to Renu Raman of Tallwood Ventures, partnering with Tower makes sense since Israel has many tech startups, fabs and a highly developed IC ecosystem. Tapping into Israel’s infrastructure would ease development of a similar ecosystem in India rather than just building a fab. “So I would start looking at partnering with Israel rather than the US or Taiwan,” Raman said. “Israel needs another market. It is a technology source and not a manufacturing place.”

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