May 20, 2025 /SemiMedia/ — Tower Semiconductor CEO Russell Ellwanger said the company pulled out of a proposed chip plant project in India five to six months ago, countering reports that partner Adani Group had recently put the $10 billion plan on hold.

“We requested to withdraw from the project several months ago for valid reasons,” Ellwanger told analysts in a recent earnings call. He declined to elaborate, citing confidentiality agreements. He also noted that no official announcement had been made since no formal agreement was ever signed with partners.

The proposed wafer fab, which was to be located in Maharashtra and had received state-level approval in 2024, was awaiting central government clearance to secure subsidies. Despite limited progress, the project drew attention amid India’s efforts to boost its domestic semiconductor industry.

Tower has previously made several attempts to establish a manufacturing footprint in India. In 2012, it joined a consortium with Jai Prakash Associates and IBM. In 2017, it was linked to another plan led by Abu Dhabi-backed Next Orbit Ventures. Both initiatives failed to materialize.

Meanwhile, Tower reported first-quarter 2025 revenue of $358 million, up 9% year-on-year, while net profit declined slightly to $40 million from $45 million a year earlier. The company forecast second-quarter revenue of approximately $372 million, plus or minus 5%, reflecting a 6% annual increase.