JERUSALEM Feb 13 Shares of Israeli chip maker
TowerJazz rose nearly 5 percent on Thursday on a
report that India's cabinet approved the setting up of two
"We will now prepare a letter of intent to participants," J
Satyanarayana, the secretary of the Department of Electronics
and Information Technology, told India's PTI.
TowerJazz is part of one of two consortia that have
proposed building semiconductor plants in India. Its consortium
includes India's Jaiprakash Associates and IBM
. The group has proposed a plant near New Delhi at a cost
of about $4 billion.
In September, the cabinet had given in-principle approval to
the projects and asked the groups to submit within two months
their detailed reports, including the production mix and
The technology providers must take at least a 10 percent
stake in the projects, while the Indian government would get an
11 percent stake in each project. The government would part-fund
the investments through interest-free loans for 10 years.
TowerJazz makes chips used in smartphones like Apple's
iPhone and Samsung's Galaxy models as well
as battery chargers and AC/DC adapters. Its shares were 4.9
percent in afternoon trading in Tel Aviv.