Russell Ellwanger, chief executive of specialty foundry Tower Semiconductor Ltd. of Migdal Emek, Israel, abandoned plans to build a wafer fab in India "five or six months ago," he said.
During a conference call with analysts to discuss Tower's solid first quarter 2025 financial results, Ellwange said recent reports that Adani had halted the $10 billion project were not true.
"It (news reports) is surprising because we stopped the project and we exited the project about five or six months ago on our own terms," Ellwange said. "We exited for very good reasons, which I cannot disclose for confidentiality reasons," he added.
Ellwange said Tower never released any information about the project to the media during its involvement in the project because no formal agreement to proceed was ever reached and for the same reason, they did not release news of exiting the project to the media.
Tower has a rocky history in India, dating back to 2012 when it formed a consortium with Jai Prakash Associates and IBM. The plan ultimately failed, and in 2017 Tower proposed to provide intellectual property and management services to a consortium centered on Abu Dhabi's Next Orbit Ventures
The Indian state of Maharashtra approved a plan for wafer foundry Tower Semiconductor and Indian conglomerate Adani Group to build a $10 billion chip factory in September 2024, but the plan still needs to wait for central government approval before it can receive subsidies under the Indian government plan.
Revenue exceeded expectations
Contract chipmaker Tower Semiconductor on Wednesday forecast second-quarter revenue above Wall Street expectations, driven by strong demand for its wireless communications and power management chips.
The Israel-based company specializes in analog and mixed-signal semiconductors for the automotive, industrial, consumer electronics and communications industries.
While demand in key sectors such as automotive has been shaky in recent quarters, with inventory adjustments and weak demand for electric vehicles weighing on orders, Tower Semiconductor is benefiting from increased demand in other end markets.
The company said it had record revenue from radio frequency infrastructure technology used in wireless communications and sensing applications.
Tower Semiconductor forecast second-quarter revenue of $372 million, up or down 5%, slightly above analysts' expectations of $371.3 million, according to data compiled by the London Stock Exchange.
Tower Semiconductor has also been increasing capacity by expanding its plant in Agrate, Italy. Although that has pushed up costs, the company still posted adjusted profit of 45 cents per share in the first quarter, above the 38 cents expected.
The company, which also reiterated its full-year forecast for quarterly revenue to rise sequentially, reported revenue of $358.2 million for the quarter ended March 31, in line with expectations.
Source: Content compiled from eenews
