According to sources, Reliance Industries, led by Mukesh Ambani, is reportedly considering the acquisition of Israel-based Tower Semiconductor. This move would allow Reliance to enter the chip ecosystem. However, the ongoing Israel-Hamas conflict may cause a delay in the plans. When asked about the acquisition, a company spokesperson denied the development, stating that there is no truth to the reports.
Tower Semiconductor is a foundry specializing in the production of high-value analog semiconductor solutions. With over 300 customers worldwide, the company manufactures analog integrated circuits for various industries such as automotive, medical, industrial, consumer, aerospace, and defense. Tower Semiconductor was ranked seventh in global foundry revenue, with $356 million, according to TrendForce Q1-Q3 data. Its annual revenue is expected to exceed $1 billion.
This opportunity for Reliance to potentially acquire Tower Semiconductor or obtain a stake in the company comes after Intel recently called off its acquisition of the Israeli company. In February 2022, Intel announced plans to acquire Tower Semiconductor for $5.4 billion. However, the deal was not approved by regulators, leading to its cancellation. Industry experts suggest that this presents Reliance with an opportunity to make a move in acquiring Tower Semiconductor.
Tower Semiconductor has shown interest in helping India build its semiconductor ecosystem. Previously, the company was part of a consortium led by Jaypee Group and offered to be a technology partner alongside IBM. More recently, Tower Semiconductor expressed interest in being a technology partner for International Semiconductor Consortium (ISMC), which had applied for India's semiconductor incentive scheme. Tower Semiconductor's CEO, Russell C. Ellwanger, had a meeting with Rajeev Chandrasekhar, Union Minister of State for Electronics & IT, discussing the potential collaboration between India and Tower Semiconductor in the semiconductor space.
Other major Indian business houses, such as Tata, Vedanta, and the Hiranandani group, are actively exploring chip manufacturing and have enlisted the expertise of semiconductor veterans to lead their ventures. Reliance's interest in chipmaking could potentially help future-proof its telecom and electronics business.
