Israeli semiconductor solutions major Tower Semiconductor (NASDAQ:TSEM) is eyeing to set up an $8 billion chip plant in India, according to the Indian Express. Reportedly, Indian authorities are evaluating Tower’s multi-billion dollar proposal, and clearance could come before the country goes to the polls later this year. Notably, India has set up a $10 billion scheme to boost chip production that offers a 50% subsidy for capital expenditures.
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As a result, if Tower’s proposal is approved, the Indian government will contribute about $4 billion to the plant. Tower’s proposal involves the production of 65-nanometer and 40-nanometer chips. These chips can be utilized in multiple end markets, including automotive and wearable devices.
Separately, Tower’s fourth-quarter results are coming up on February 14. Wall Street expects the company to post an EPS of $0.53 on revenue of $350 million. In the comparable year-ago period, Tower’s EPS of $0.81 had handily beat expectations by $0.24.
What Is the Target Price for TSEM?
Overall, the Street has a Moderate Buy consensus rating on Tower Semiconductor, and the average TSEM price target of $36.50 implies a 24.1% potential upside in the stock. That’s on top of a nearly 15% jump in the company’s share price over the past three months.
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