Tower Semiconductor, an Israeli chip manufacturer, has rekindled its interest in India's chip incentive programme and is considering establishing a semiconductor fabrication facility there.

Due to regulatory concerns, Intel abandoned its August proposal to pay $5.4 billion to acquire Tower Semiconductor.

If Tower's petition is approved, it will be the first semiconductor company to bid for India's $10 billion chip manufacturing programme with actual fabrication experience, which could significantly advance New Delhi's chip manufacturing goals.

Asked about Tower Semiconductor’s renewed interest in India’s chip incentive plan Minister of State for Electronics and IT Rajeev Chandrasekhar said the government has invited its CEO Russel C Ellwanger to discuss its partnership with India in the chip space.

Chandrasekhar had met Ellwanger earlier this week along with Naor Gilon, Israel’s Ambassador to India. He, however, declined to comment if the company would apply under the chip making scheme.

Tower Semiconductor did not respond until publication to a request for comment.

The Israeli company is best known for older technology that produces analog chips used for tasks such as amplifying signals and managing power in cell phones and other products.