Adani Group Plans $10 Billion Chip Project in Maharashtra with Israel’s Tower Semiconductor

Israel’s Tower Semiconductor and Adani Group will invest $10 billion (roughly Rs. 83,958 crore) for a semiconductor project in India’s western state of Maharashtra, its chief minister said in a post on X on Thursday.

India has taken steps to encourage global companies to set up their manufacturing units in the country, with Prime Minister Narendra Modi aiming to make the country a chipmaker for the world despite initial setbacks.

Foxconn withdrew in July last year from a $19.5 billion (roughly Rs. 1,63,718 crore) semiconductor joint venture with Indian conglomerate Vedanta, and plans by ISMC, a venture between Abu Dhabi-based Next Orbit Ventures and Tower Semiconductor, to invest $3 billion (roughly Rs. 25,187 crore) in India, have been stalled.

Still, India expects its semiconductor market to be worth $63 billion (roughly Rs. 5,28,937 crore) by 2026.

Semiconductor manufacturing marks the latest foray for billionaire Gautam Adani, whose conglomerate has businesses across ports, power utilities, transmission and coal trading.

The $10 billion  (roughly Rs. 83,958 crore) semiconductor plant in Maharashtra will initially have a capacity of 40,000 wafers, the state’s deputy chief minister Devendra Fadnavis said in a post on X.

Chief Minister Ehnath Shinde said in a social media post that projects worth 1.17 trillion rupees were approved on Thursday, which will create 29,000 jobs in the state.

Two new electric vehicle manufacturing units will also be set up in the state, with Skoda-Volkswagen investing 150 billion rupees for its plant to produce electric vehicles and hybrids.

Toyota-Kirloskar will dole out 212.73 billion-rupees to manufacture hybrid and electric vehicles at its plant in the state.

Adani group, Tower Semiconductor, Skoda-Volkswagen and Toyota-Kirloskar did not immediately respond to a request for comment from Reuters.

© Thomson Reuters 2024

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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