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The Indian government is making significant strides in its ambition to establish a robust domestic semiconductor industry, and a major development in this endeavor is the proposed joint venture between the Adani Group and Israel's Tower Semiconductor. This ambitious project, valued at a staggering USD 10 billion (₹83,947 crore), aims to construct a state-of-the-art semiconductor manufacturing facility in Taloja, Panvel, Maharashtra. This venture marks a significant leap forward for India's aspirations of becoming a key player in the global semiconductor supply chain.
The proposed facility, located in Navi Mumbai's Raigad district, is anticipated to play a pivotal role in strengthening India's self-reliance in semiconductor production. The first phase of the project will involve an investment of ₹58,763 crore, with the capacity to produce 40,000 wafer starts per month (WSPM). Subsequently, the second phase will see an additional investment of ₹25,184 crore, doubling the plant's capacity to 80,000 WSPM. Upon completion, this facility will become India's second semiconductor manufacturing unit.
While Maharashtra's cabinet has granted its approval, the project still requires the final green light from the India Semiconductor Mission (ISM) and the Ministry of Electronics and Information Technology. These federal approvals are crucial for securing government incentives, which are essential for the project's financial viability. Reports suggest that federal support may be contingent upon ISM clearance, although this information could not be independently verified. This venture aligns with India's broader strategy to reduce reliance on global supply chains and bolster its domestic semiconductor capabilities. The Adani-Tower Semiconductor project, alongside other initiatives like the Tata Group's fabrication unit in Dholera, Gujarat, and Kaynes Semicon's outsourced assembly and testing plant in Gujarat, represents a significant step towards achieving this strategic goal.
Source: Gautam Adani makes a $10 billion chip gamble in Maharashtra: Here's what you need to know