Reliance Industries, led by Mukesh Ambani, is reportedly considering the acquisition of Israel-based Tower Semiconductor, according to Business Today. Although plans for the acquisition are in progress, they might face delays due to the ongoing Israel-Hamas conflict. Reliance, however, denied these rumors, with a company spokesperson stating, “We are not in talks to acquire Tower Semiconductor. There is no truth in this.”
Acquiring Tower Semiconductor could enable Reliance to enter the chip ecosystem, a move seen as strategic amidst the global chip shortage. This opportunity arose after Intel’s cancellation of its $5.4 billion acquisition of Tower Semiconductor in August 2023. Regulatory challenges led to the abandonment of the deal, paving the way for potential buyers like Reliance.
Tower Semiconductor is a significant player in the semiconductor industry, specializing in high-value analog semiconductor solutions. The company caters to more than 300 customers worldwide, serving sectors such as automotive, medical, industrial, consumer electronics, aerospace, and defense. Its global ranking rose to seventh in foundry revenue, generating $356 million in Q1-Q3, with an estimated annual revenue surpassing $1 billion.
Notably, Tower Semiconductor has expressed interest in assisting India in building its semiconductor ecosystem. The company participated in consortiums aiming to establish semiconductor technology partnerships under India’s incentive schemes. Recently, a meeting between Rajeev Chandrasekhar, India’s Union Minister of State for Electronics & IT, and Russell C. Ellwanger, CEO of Tower Semiconductors, discussed potential India-Tower partnerships in the semiconductor field. The meeting also involved Naor Gilon, Israel’s Ambassador to India.
Reliance’s interest in Tower Semiconductor aligns with the trend of major Indian business houses, including Tata, Vedanta, and Hiranandani group, venturing into chip manufacturing. This move is seen as a strategy to future-proof Reliance’s telecom and electronics businesses in the rapidly evolving global market.
