Maharashtra’s cabinet has approved a massive USD 10 billion (₹83,947 crore) investment plan for a joint venture between Israel’s Tower Semiconductor and the Adani Group.
The project aims to establish a semiconductor manufacturing facility in Taloja, Panvel, marking a significant boost for India’s semiconductor sector.
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Deputy Chief Minister Devendra Fadnavis announced that the facility, located in Navi Mumbai’s Raigad district, will play a crucial role in bolstering India’s self-reliance in semiconductor production.
The first phase will see an investment of ₹58,763 crore, with the capacity to produce 40,000 wafer starts per month (WSPM). A second phase will involve ₹25,184 crore to double the plant’s capacity to 80,000 WSPM, positioning it as India’s second semiconductor manufacturing unit.
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Although Maharashtra’s approval is a significant step forward, the project still requires final approval from the India Semiconductor Mission (ISM) and the Ministry of Electronics and Information Technology to secure federal incentives.
While state-level approvals can proceed, some reports suggest federal support hinges on ISM clearance. BT could not independently verify this aspect.
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This development follows the Union Cabinet’s approval of a ₹3,307 crore outsourced assembly and testing plant by Kaynes Semicon in Gujarat, which will handle 6.3 million chips per day.
Along with other semiconductor projects, including Tata Group’s fabrication unit in Dholera, Gujarat, the Adani-Tower Semiconductor venture is part of India’s broader effort to build a robust domestic semiconductor industry and reduce reliance on global supply chains.
