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Maharashtra says Tower-Adani to set up $10 billion semiconductor unit

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By ET BureauLast Updated: Sep 06, 2024, 05:30:00 AM IST

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Synopsis

The Maharashtra cabinet has approved a $10-billion investment by a Tower Semiconductor-Adani Group joint venture to establish a semiconductor chip manufacturing unit in Taloja, Panvel. The project will have an initial capacity of 40,000 wafer starts per month, expanding to 80,000 WSPM in the second phase.

Maharashtra cabinet panel Thursday approved a $10-billion (₹83,947 crore) investment proposal by a Tower Semiconductor-Adani Group joint venture to set up a semiconductor chip manufacturing unit at Taloja in Panvel, the state's deputy chief minister, Devendra Fadnavis, wrote on X.

The semiconductor manufacturing unit, in the Navi Mumbai suburbs in Raigad district, will have a total capacity of 40,000 wafer starts per month (WSPM) in the first phase and an overall capacity of 80,000 WPSM. Of the total investment in the project, ₹58,763 crore will be infused in the first phase and the remaining ₹25,184 crore in the second phase, Fadnavis said.

Emails sent to Tower and Adani Group did not elicit a response till press time.

Sources in the ministry of electronics and information technology said that while the project might have been approved at the state level, a joint application submitted by Israel's Tower Semiconductor and Adani Group was still under consideration by the India Semiconductor Mission (ISM) and the IT ministry.

India's Second Chip Unit

"The states are free to set up their own (semiconductor) units," a senior government official said. "All applicants expecting incentives under the central government's plan must, however, get approvals from the ISM."

If approved, the project will be India's second chip manufacturing facility and the sixth semiconductor plant which either manufactures or tests and packages silicon chips.

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Earlier this week, the Union Cabinet had approved a Rs 3,307-crore outsourced assembly and testing unit proposal by Mysore-based Kaynes Semicon. The company will set up its OSAT unit at Sanand in Gujarat with a total capacity of 6.3 million chips per day.

India has five centrally approved semiconductor projects. A chip fabrication unit is being set up at Dholera in Gujarat, besides four chip packaging units. Three of the latter are being set up at Sanand in Gujarat and one at Morigaon in Assam. The proposed cumulative investment in these units is Rs 1.50 lakh crore.

The Dholera chip fabrication unit is a joint venture of the Tata Group and Taiwan's Powerchip Semiconductor Manufacturing Corporation, with a capacity of 50,000 WSPM.