Gautam Adani gambled $10 billion

Business: Maharashtra Cabinet has approved a massive investment plan of USD 10 billion (₹83,947 crore) for a joint venture between Israel’s Tower Semiconductor and Adani Group. The project aims to set up a semiconductor manufacturing facility at Taloja in Panvel, a significant boost for India’s semiconductor sector. Deputy Chief Minister Devendra Fadnavis announced that the facility, located in Navi Mumbai’s Raigad district, will play a key role in enhancing India’s self-reliance in semiconductor production.

The first phase will entail an investment of ₹58,763 crore, with a capacity to produce 40,000 wafer starts per month (WSPM). The second phase will cost ₹25,184 crore to double the plant’s capacity to 80,000 WSPM, making it India’s second semiconductor manufacturing unit. Although Maharashtra’s approval is a significant step, the project still needs final approval from the India Semiconductor Mission (ISM) and the Ministry of Electronics and Information Technology to receive federal incentives.

While state-level approvals could be a step forward, some reports suggest that federal support depends on ISM’s approval. BT could not independently confirm this aspect. This development comes after the Union Cabinet’s approval to a ₹3,307 crore outsourced assembly and testing plant by Kenes Semicon in Gujarat, which will handle 6.3 million chips per day. Along with other semiconductor projects including Tata Group’s manufacturing unit in Dholera, Gujarat, the Adani-Tower Semiconductor venture is part of India’s broader effort to build a strong domestic semiconductor industry and reduce dependence on global supply chains.