Maharashtra Greenlights Mega $10 Billion Adani-Tower Semiconductor Project, Awaits Centre Nod
The Maharashtra state cabinet has given its approval to a mammoth $10 billion semiconductor manufacturing facility that will be jointly developed by Adani Group and Israeli firm Tower Semiconductor. However, the crucial approval from the central government is still awaited for the project to take off.
As per details, the mega semiconductor plant will come up in Raigad district of Maharashtra at an investment of $10 billion over two phases, generating over 15,000 jobs. The first phase is projected to require an investment of $7.7 billion while the second phase will need $2.5 billion.
Interestingly, this is the second major semiconductor project announced by a state before the central nod. Earlier in 2022, Gujarat had signed an MoU for a $19.5 billion venture between Vedanta and Taiwan's Foxconn, but it failed to materialize.
Tower Semiconductor brings decades of experience and technology in analog and mixed-signal semiconductor manufacturing to the table. The proposed facility will have a monthly capacity of 40,000 wafers in the initial phase and 80,000 wafers once fully completed.
However, key sources from the central government reveal that the MeitY is still evaluating the application submitted by Adani and Tower under India's $76 billion semiconductor incentives scheme. Approval from New Delhi is critical for the project to move forward and actual work commence on ground.
India has been aggressively wooing global chipmakers under its ambitious target of becoming a leading semiconductor manufacturing hub. It has approved 5 projects so far with commitments close to the entire allocated $10 billion pool. The government is now working on a second phase to further accelerate indigenous chip production.
