Indian conglomerate Reliance Industries is looking to acquire Israeli company Tower Semiconductor, reported Business Today, citing sources.

The deal would aid Reliance’s entry into the chip industry and future-proof the company’s electronics and telecom businesses.

The plans are likely to be delayed due to the ongoing war between Israel and Palestinian militant group Hamas.

Last year, Reliance was reportedly considering investing in semiconductor wafer fabrication applicant International Semiconductor Consortium (ISMC), a joint venture between Next Orbit Ventures and Tower Semiconductor. However, a deal did not materialise.

The latest development comes after Intel scrapped the $5.4bn deal to acquire Tower Semiconductor.

In August this year, Intel said it was mutually terminating the deal following failure to secure regulatory approval in a timely manner.

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Experts claim that this has given Reliance the chance to purchase Tower Semiconductor or a portion of the business.

Tower Semiconductor is engaged in producing analogue integrated circuits for over 300 clients globally, including those in the consumer, automotive, medical, industrial, aerospace, and defence industries.

The Israeli company has made multiple offers to assist India in developing its semiconductor industry.

Tower Semiconductor was a technology partner alongside IBM in a consortium headed by Jaypee Group in 2013–2014.

In February 2022, Tower Semiconductor made an offer as a JV partner of ISMC.

ISMC has applied for a 65nm technology node analogue fabrication facility under India’s Rs760bn semiconductor incentive scheme.

Recently, India’s Union Minister of State, Ministry of Electronics and IT Rajeev Chandrasekhar met with Tower Semiconductors CEO Russell Ellwanger to discuss the semiconductor industry’s relationship between Tower and India.

Naor Gilon, the Israeli ambassador to India, also attended the meeting.

Besides reliance, other major Indian companies such as Tata, Vedanta, and the Hiranandani group, are actively considering getting into the chip manufacturing industry.