Maharashtra Approves $10 Billion Semiconductor Fab Unit by Adani & Tower Semiconductor

In a significant move for India's semiconductor industry, the Maharashtra cabinet approved a $10 billion semiconductor fabrication unit to be developed by the Adani Group and Israel-based Tower Semiconductor. Located in Panvel, Mumbai, the unit will be built in two phases with a total investment of ₹83,947 crore.

Phases of Development

The first phase, with an investment of ₹58,763 crore, aims to produce 40,000 semiconductor wafers monthly. The second phase, adding ₹25,184 crore in investment, will double the capacity to 80,000 wafers per month. This unit is set to create over 5,000 direct jobs and will be established at the Maharashtra Industrial Development Corporation (MIDC) Taloja Industrial Area, a region already housing multiple industries.

India's Semiconductor Push

This project, awaiting approval from the central government's India Semiconductor Mission (ISM), will be the second fabrication unit in India after Tata's fab in Dholera, Gujarat. Earlier this week, the government approved a chip plant by Kaynes Semicon in Sanand, Gujarat, marking another step towards bolstering India's semiconductor ecosystem.

Building India's Chip Ecosystem

In 2023, four semiconductor units, including Tata Electronics and CG Power, received approval with a cumulative investment of ₹1.5 trillion. These units, when operational, are expected to produce about 70 million chips per day, indicating the rapid development of India's semiconductor ecosystem.

Curtesy by: Business Standard