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The Maharashtra government has given the green light to a substantial USD 10 billion semiconductor investment proposal from a joint venture between Tower Semiconductor and the Adani Group. This ambitious project, set to be located in Taloja, Panvel, marks a significant step forward for India's burgeoning semiconductor industry. While the Maharashtra government has granted its approval, the proposal still awaits the critical nod from the Union Ministry of Electronics and Information Technology, which has allocated USD 1 billion to incentivize semiconductor projects within the country.
The joint application by Tower Semiconductor and Adani Group is currently under review by the India Semiconductor Mission (ISM) and the IT ministry. According to reports, the proposed facility in Navi Mumbai's Raigad district will boast an initial production capacity of 40,000 wafer starts per month (WSPM), with plans to eventually reach 80,000 WSPM. The investment is slated to be deployed in two phases: Rs 58,763 crore for the first phase and Rs 25,184 crore for the second phase.
If approved, this project would become India's second chip manufacturing facility, adding to the nation's semiconductor ecosystem. Currently, India has five semiconductor plants dedicated to manufacturing or testing and packaging silicon chips. Earlier this week, the government greenlit a Rs 3,307 crore outsourced assembly and testing (OSAT) unit proposed by Kaynes Semicon in Sanand, Gujarat. This unit is expected to have a production capacity of 6.3 million chips per day. The government's commitment to bolstering India's semiconductor industry is evident in its approval of various projects, including a chip fabrication unit in Dholera, Gujarat, and four chip packaging units in Sanand, Gujarat, and Morigaon, Assam. These projects represent a collective investment of Rs 1.50 lakh crore.
The Adani-Tower Semiconductor project, if realized, will significantly contribute to India's goal of becoming a global hub for semiconductor manufacturing. It has the potential to create thousands of jobs, stimulate technological advancements, and bolster India's economic competitiveness on the world stage. The project's success hinges on the approval from the Union Ministry of Electronics and Information Technology, which is expected to evaluate the proposal thoroughly before making a decision. The outcome of this evaluation will be eagerly watched by industry stakeholders and policymakers alike.
Source: Maharashtra govt nod for USD 10 billion Adani-Tower Semicon proposal