Tower Semiconductors CEO Russell Ellwanger (official pic)
Tower Semiconductor, an Israeli chip maker, has no plans to open a new plant in Israel for a number of reasons, according to its CEO Russell Ellwanger. This news comes after reports the firm is planning a new $8 billion plant in India.
The Indian Express reported that Tower has already submitted the plans for the new plant to the Indian government for its approval.
The firm also saw a drop in revenue in Q4 2023. Tower Semiconductor’s revenue was $351.7 million for the three months ended December 31, down more than 12% year-on-year. Its profits for the quarter were $0.55 per share. It forecasts $325 million in revenue for the first quarter of 2024, with an upward or downward range of 5%.
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As for the company’s future in Israel, Tower Semiconductor CEO Russell Ellwanger said that it has no financial incentive to expand in its home country.
He told Israel’s Calcalist, “There is no subsidy in Israel that would make the establishment of a plant here profitable. The United States gives a grant of 35% of the establishment costs, India gives a grant of 75%, while Israel gives today A grant of only 9%, compared to the 34% we received in the past.”
However, Ellwanger did say that Tower Semiconductor is not planning any layoffs in Israel.
“We did not lay off employees either during the Corona period or last year, which was difficult for the entire high-tech industry, and this is because I do not believe in layoffs designed to meet financial goals. If you take good care of the employees, the customers will also be satisfied and then the shareholders will also prosper.”
Russell Ellwanger did not confirm the reports about a planned new plant in India.
“From everything that has been published there, I can only confirm that I met with the Indian IT minister a few months ago,” he told Calcalist.
Russell Ellwanger has served as Tower Semiconductor’s Chief Executive Officer since May 2005. Before that, he was a group Vice President at Applied Materials Inc. He held executive positions at Novellus Systems, and management positions at Philips Semiconductor.
