Israel’s chipmaking company Tower Semiconductors, has resubmitted proposals for 65nm and 40nm chips to set up a semiconductor fabrication unit in India.

The company is also facing legal action from its former joint partner, Next Orbit Ventures, which is contemplating suing Tower Semiconductors for proceeding to submit a fresh proposal with a new partner.

It is said that Next Orbit Ventures will challenge the new proposal, claiming a breach of the terms of the contract it had with Tower Semiconductors.

BC Jindal Group is likely to be the new partner in Tower Semiconductors' proposal. However, the expected deal has not been officially disclosed.