Tower-Adani JV to set up $10 billion semiconductor unit in Maharashtra; may become India’s 2nd chip manufacturing facility – Times of India

India’s second chip manufacturing facility soon? The Maharashtra cabinet panel has given the green light to a substantial investment proposal amounting to $10 billion (Rs 83,947 crore) on Thursday. The venture, a collaboration between Tower Semiconductor and the Adani Group, aims to establish a semiconductor chip manufacturing facility at Taloja in Panvel, Devendra Fadnavis, the state’s deputy chief minister, announced on the social media platform X.
The semiconductor manufacturing unit will be located in the Navi Mumbai suburbs within Raigad district. It is set to have an initial capacity of 40,000 wafer starts per month (WSPM) during its first phase. The overall capacity is projected to reach 80,000 WPSM upon completion.
Fadnavis provided a breakdown of the investment, stating that Rs 58,763 crore will be infused in the first phase and the remaining Rs 25,184 crore in the second phase.
Sources within the ministry of electronics and information technology told ET that although the project has secured approval at the state level, the joint application submitted by Israel’s Tower Semiconductor and Adani Group is currently under review by the India Semiconductor Mission (ISM) and the IT ministry.
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The Indian government has given states the autonomy to establish their own semiconductor units, according to a senior official. However, the official emphasized that “all applicants expecting incentives under the central government’s plan must, however, get approvals from the ISM.”
If given the green light, the project will become India’s second chip manufacturing facility and the sixth semiconductor plant that either produces or tests and packages silicon chips.
Earlier in the week, the Union Cabinet approved a proposal by Kaynes Semicon, based in Mysore, for an outsourced assembly and testing unit worth Rs 3,307 crore. The company plans to establish its OSAT unit in Sanand, Gujarat, with a total capacity of 6.3 million chips per day.
India currently has five semiconductor projects that have been approved by the central government. These include a chip fabrication unit being constructed in Dholera, Gujarat, and four chip packaging units. Three of the packaging units are located in Sanand, Gujarat, while one is situated in Morigaon, Assam. The total proposed investment in these units amounts to Rs 1.50 lakh crore.
The chip fabrication unit in Dholera is a collaborative venture between the Tata Group and Powerchip Semiconductor Manufacturing Corporation from Taiwan, with a capacity of 50,000 WSPM.