Maharashtra's cabinet has given the go-ahead for a substantial $10 billion investment in a joint venture between Israel's Tower Semiconductor and the Adani Group to construct a semiconductor manufacturing facility in Taloja, Panvel. The project, set to be located in Navi Mumbai’s Raigad district, is seen as a key contributor to boosting India's semiconductor industry and reducing reliance on global supply chains. The first phase of the project involves an investment of ₹58,763 crore and will have the capacity to produce 40,000 wafer starts per month (WSPM).
Deputy Chief Minister Devendra Fadnavis highlighted the importance of the facility in bolstering India's self-reliance in semiconductor production. The second phase of the project will require an additional ₹25,184 crore to double the plant's capacity to 80,000 WSPM, making it India's second-largest semiconductor manufacturing unit. While Maharashtra's approval marks a significant milestone, final clearance is still pending from the India Semiconductor Mission (ISM) and the Ministry of Electronics and Information Technology to secure federal incentives. State-level approvals are progressing, but reports indicate that federal support is contingent on ISM approval, a detail that remains unverified by independent sources.
This initiative in Maharashtra mirrors recent developments in Gujarat, where a $3,307 crore outsourced assembly and testing plant by Kaynes Semicon received approval. This plant in Gujarat is poised to manage 6.3 million chips per day. Alongside other semiconductor projects like Tata Group's fabrication unit in Dholera, Gujarat, the Adani-Tower Semiconductor partnership is part of India's broader strategy to fortify its domestic semiconductor industry and decrease dependence on global supply chains.