Adani Group will build a semiconductor manufacturing plant with its Israeli partner, aiming to boost India’s chip manufacturing capabilities.
He Adani Group and Israel’s Tower Semiconductor Ltd will build the chip manufacturing plant, according to a report by Bloomberg.
The plant will be built with an investment of ₹83,947 crore ($10 billion) in Taloja, on the outskirts of Mumbai, he said. Devendra FadnavisDeputy Chief Minister of Maharashtra, in a post on X.
Fadnavis said the plant will have a production capacity of 40,000 wafers in the first phase and 80,000 wafers in the second phase, creating 5,000 jobs.
The semiconductor plant is expected to be built within three to five years, according to Bloomberg The Adani Group will fund the investment through its internal funds and debt, it added.
Chips made at the new semiconductor plant will be used in drones, cars, smartphones and other projects.
Semiconductors are a key industry amid growing technological rivalry between the United States and China, and India is aiming to manufacture semiconductor chips at home rather than rely on imports.
This agreement with Adani strengthens Tower Semiconductor’s position in the Indian market and gives it a boost after its failed takeover bid by Intel Corp, the report said.
However, Tower Semiconductor’s sales still lag far behind those of industrial giants Intel and Taiwan Manufacturing Co.
Tata semiconductor plant
Previously, Tata Group partnered with Taiwan Semiconductor Manufacturing Corp to build a ₹Rs 91 billion ($11 billion) chip manufacturing plant in Dholera, Gujarat.
The Tata Group plant was expected to make 50,000 mature chips using 40-nanometer or larger technology, mainly for consumer electronics, automobiles, defense systems and aircraft.
Earlier this year, the Indian government received proposals worth $21 billion to build semiconductor capacity, with more than $15 billion dedicated to chip manufacturing plants, according to the report.
India has also set up a $10 billion fund to attract chipmakers, including top U.S.-based memory maker Micron Technology Inc., to build a $2.75 billion plant in Gujarat.
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