Adani-Tower JV To Build $10 Bn Semiconductor Facility In Maharashtra

Maharashtra’s cabinet has given the green light to a massive USD 10 billion (Rs 83,947 crore) investment plan by a joint venture between Israel's Tower Semiconductor and the Adani Group to build a semiconductor manufacturing facility in Taloja, Panvel. 

Announced by the state’s Deputy Chief Minister Devendra Fadnavis, the plant will be located in Navi Mumbai's Raigad district and will become a key part of India’s efforts to bolster its semiconductor industry.

The first phase of the project will involve an investment of Rs 58,763 crore and create a facility capable of producing 40,000 wafer starts per month (WSPM). The second phase will see an additional Rs 25,184 crore invested, doubling the plant’s capacity to 80,000 WSPM. Once completed, this facility would mark India’s second semiconductor manufacturing unit.

Despite the approval at the state level, the project is still under review by the India Semiconductor Mission (ISM) and the Ministry of Electronics and Information Technology. For the joint venture to receive central government incentives, it will require final approval from these authorities. A senior government official emphasized that while states can independently approve semiconductor projects, federal incentives are contingent on ISM approval.

This venture follows a recent announcement by the Union Cabinet approving a Rs 3,307 crore outsourced assembly and testing (OSAT) plant by Kaynes Semicon in Gujarat, which will have the capacity to process 6.3 million chips per day. India’s semiconductor expansion also includes five other centrally approved projects, including a chip fabrication plant in Dholera, Gujarat, and four chip packaging units across Sanand and Morigaon.

The Dholera unit, developed by the Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corporation, is projected to produce 50,000 WSPM, contributing to India’s growing semiconductor ecosystem as it aims to reduce reliance on global supply chains and become a leader in advanced electronics.