Adani Group and Tower Semiconductor to Build $10 Billion Chip Plant in Maharashtra

Maharashtra’s cabinet has approved a massive $10 billion (₹83,947 crore) investment by a joint venture between Adani Group and Tower Semiconductor to build a semiconductor manufacturing plant in Taloja, near Panvel. The announcement was made by Deputy Chief Minister Devendra Fadnavis on X.

About the Project:

• The semiconductor plant will be located in Navi Mumbai’s Raigad district.
• In its first phase, the plant will have a capacity of 40,000 wafer starts per month (WSPM). The overall capacity will be expanded to 80,000 WSPM in the second phase.
• The first phase will see an investment of ₹58,763 crore, while ₹25,184 crore will be invested in the second phase.

Emails sent to Adani Group and Tower Semiconductor for comments have not been answered yet.

Pending Central Approval:

While the Maharashtra government has approved the project, the India Semiconductor Mission (ISM) and the Ministry of Electronics and Information Technology are still reviewing a joint application by Adani Group and Tower Semiconductor. For the project to qualify for incentives from the central government, it must receive ISM approval.

India’s Growing Semiconductor Industry:

• If approved, this will be India’s second semiconductor manufacturing facility and the sixth semiconductor plant in the country.
• The first chip unit is being developed at Dholera in Gujarat by a joint venture between the Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation, with a capacity of 50,000 WSPM.
• Earlier this week, the Union Cabinet approved a ₹3,307 crore proposal for an outsourced assembly and testing (OSAT) unit by Mysore-based Kaynes Semicon at Sanand in Gujarat.

With these upcoming projects, India is stepping up its game in the global semiconductor industry.