Israel-based firm Tower Semiconductors has re-submitted a proposal to set up a semiconductor fabrication facility for 65 nanometer (nm) and 40 nm chips in India.

The new partner in Tower Semiconductors' proposal could be the BC Jindal Group, a major manufacturer of packaging and labelling products. The proposal marks Tower’s second attempt at establishing a semiconductor chip fabrication unit in the country.

The chip maker's initial effort to enter the Indian market involved a joint venture with the International Semiconductor Consortium (SIMC) Analog Fab  to set up a chip fabrication unit with a proposed investment of USD three billion. However, this initiative developed into challenges and was eventually discontinued.

Moreover, the current proposal has strained relations with Next Orbit Ventures, which alleges it was excluded from the new alliance despite a signed non-disclosure agreement (NDA) and a prior agreement with Tower.