Adani to invest Rs 83K crore in semiconductor plant with Israeli firm Tower

The Adani Group plans to invest Rs 83,947 crore (USD 10 billion) with Israeli partner Tower Semiconductor in setting up a chip manufacturing plant in Maharashtra, the state chief minister said.

The conglomerate led by billionaire Gautam Adani has businesses ranging from seaports to airports, renewable energy, gas, commodities, data centres and media, and this will be its maiden foray into semiconductor manufacturing.

Maharashtra Deputy Chief Minister Devendra Fadnavis, in a post on X that listed projects approved by the state cabinet’s sub-committee on Thursday, said the Adani-Tower will set up the chip manufacturing facility at Taloja on the outskirts of Mumbai.

Without giving timelines, he said the project will manufacture 40,000 wafers (a thin slice of semiconductor material that is used in fabricating integrated circuits) per month in Phase 1 and 80,000 wafers per month after Phase II.

The government has been pushing for setting up semiconductor units in the country to cut reliance on imports.

Tower has chip-making factories in Israel, Italy and the US. Its sales are, however, a fraction of industry giants Intel and Taiwan Semiconductor Manufacturing Co.