Maharashtra approves $ 10 bn semiconductor fab unit by Adani, Israeli firm | Company News
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On the employment front, the project is expected to generate more than 5,000 direct jobs, said Fadnavis. Photo: Bloomberg
Maharashtra’s cabinet on Thursday approved a semiconductor fabrication unit to be established jointly by the Adani Group and Israel-based Tower Semiconductor for an investment of about Rs 83,947 crore ($10 billion) in Panvel, Mumbai.
The unit, which has to get approval from the central government’s India Semiconductor Mission (ISM), will be developed in two phases, said Deputy Chief Minister Devendra Fadnavis on X (formerly Twitter). The first phase will see an investment of Rs 58,763 crore and produce 40,000 semiconductor wafers monthly. The second phase, with an investment of Rs 25,184 crore, will take the total wafer capacity of the plant to 80,000 per month.
The unit is expected to create more than 5,000 direct jobs, said Fadnavis. It is planned to be set up at the Maharashtra Industrial Development Corporation (MIDC) Taloja Industrial Area, which already hosts a variety of industries and firms.
The Tower-Adani unit will be the second fabrication project in the country, after Tata’s Dholera plant which was approved by the central government in February. If approved under ISM, the Panvel plant will be the sixth semiconductor chip unit in the country. A chip plant by Kaynes Semicon in Sanand, Gujarat, was approved by the centre earlier this week.
In June 2023, the Union Cabinet approved the first proposal for setting up a semiconductor unit in Sanand by US-based memory chip giant Micron.
In February, three more semiconductor units received approval. Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and a testing and assembly unit in Morigaon, Assam. Additionally, CG Power is establishing an outsourced semiconductor assembly and test (OSAT) unit in Sanand.
“Construction of all four semiconductor units is progressing at a rapid pace, and a robust semiconductor ecosystem is emerging near the units. These four units will bring an investment of almost Rs 1.5 trillion. The cumulative capacity of these units is about 70 million chips per day,” said the central government on September 2.
First Published: Sep 06 2024 | 10:32 AM IST
