Tower-Adani JV Plans $10 Billion Semiconductor Plant in Maharashtra

A major milestone in India's semiconductor industry is on the horizon as the Maharashtra Cabinet panel has greenlit a USD 10-billion (Rs 83,947 crore) investment proposal from the Tower Semiconductor-Adani Group joint venture (JV). The project will establish a state-of-the-art semiconductor chip manufacturing plant in Panvel, Raigad district.

The proposed facility in Taloja will initially have a production capacity of 40,000 wafer starts per month (WSPM), with plans to expand to 80,000 WSPM in subsequent phases. The first phase of the project will require an investment of Rs 58,763 crore, while the second phase will see an additional Rs 25,184 crore invested. The joint venture, comprising Israel's Tower Semiconductor and Adani Group, is awaiting final approval from the India Semiconductor Mission (ISM) and the IT Ministry.

If approved, this project will mark India's second semiconductor chip manufacturing facility, following the recent approval of a Rs 3,307-crore outsourced assembly and testing unit by Kaynes Semicon. The initiative aligns with the Union Cabinet's broader strategy to enhance domestic semiconductor capabilities.

Currently, India has five central-approved semiconductor projects in progress. These include a chip fabrication unit in Dholera, Gujarat, and chip packaging units in Sanand, Gujarat, and Morigaon, Assam. Collectively, these projects represent a substantial investment of Rs 1.50 lakh crore, underscoring the country's commitment to developing a robust semiconductor industry.

The Tower-Adani JV's project is expected to significantly bolster India's semiconductor manufacturing capacity, contributing to the country's technology infrastructure and economic growth.