Israel's Tower Semiconductor ties up with Adani Group for $10 billion chip project

Adani’s semicon foray: Israel's Tower Semiconductor and Adani Group will invest Rs 83, 947 crore ($10.01 billion) for a semiconductor project in India's western state of Maharashtra, its deputy chief minister Devendra Fadnavis said in a post on X on Thursday.

The manufacturing facility will be established at Taloja MIDC, Panvel. The project will unfold in two phases, focusing on the production of analogue and mixed-signal semiconductors.

In the first phase, an investment of Rs 58,763 crore will enable the facility to produce 40,000 semiconductor wafers per month. Phase two, involving an additional Rs 25,184 crore, is expected to double this capacity to 80,000 wafers per month.

The project aims to address the growing demand for semiconductor components across the world, a critical sector in the global technology landscape. Once completed, the facility is expected to create over 5,000 jobs, contributing significantly to local employment and the country’s broader push towards technological self-reliance. This initiative aligns with India's semiconductor mission, focusing on boosting its capabilities in high-tech manufacturing. 

Two new electric vehicle manufacturing units will also be set up in the state, with Skoda-Volkswagen investing Rs 15,000 crore while Toyota-Kirloskar will dole out Rs 21,273 crore for its plant.