$10 billion chip project in Maharashtra gets government approval
The fab project is to be jointly set up by India’s Adani Group and Israel’s Tower Semiconductor. However, it requires the approval of the central government.
The government in the western Indian state of Maharashtra has approved a ₹840 billion (approximately USD 10 billion) semiconductor fab project to be jointly set up by India’s Adani Group and Israel’s Tower Semiconductor.
However, the central government’s Ministry of Electronics and IT has not yet approved the new unit.
The semiconductor project in the state’s Raigad district is one of four projects, including two EV manufacturing units, approved by the state government.
“Tower Semiconductor company and Adani Group would jointly launch a mega-project of semiconductor manufacturing at Panvel (District Raigad). There would be investment of Rs 58,763 crore (₹588 billion) in first phase and Rs 25184 crore (₹252 billion) in second phase, thereby a total of Rs 83,947 crore (₹840 billion) generating employment to 15,000 persons,” said the press release issued by the state government.
Besides the semiconductor project, the Maharashtra government has given its nod to Skoda Auto Volkswagen India Company’s investment of ₹120 billion in Pune for a new EV manufacturing facility and Toyota Kirloskar Motor Company’s plan to establish an EV manufacturing unit in Chhatrapati Sambhajinagar with an investment of ₹212 billion.
If approved, the Tower-Adani unit will be the second fabrication project in India, after Tata’s Dholera plant in Gujarat which got the central government’s go-ahead in February.
In June 2023, the central government approved the first project for setting up a semiconductor unit in Sanand (Gujarat) by US memory chip giant Micron.
In February, three more semiconductor units were approved. Tata is establishing a semiconductor fab in Dholera and a testing and assembly unit in Morigaon, Assam. CG Power is setting up an OSAT unit in Sanand.