Maharashtra Cabinet committee approved an investment proposal of Rs 83,947 crore ($10 billion) for a joint venture (JV) between Tower Semiconductor and the Adani group. According to the state's Deputy Chief Minister Devendra Fadnavis on social networking site X, the joint venture plans to develop a semiconductor chip manufacturing plant in Taloja, Panvel.

The projected semiconductor manufacturing factory, located in the Navi Mumbai suburbs of Raigad district, will have an initial capacity of 40,000 wafer starts per month (WSPM) in the first phase and a maximum capacity of 80,000 WSPM. The first phase would receive Rs 58,763 crore of the overall investment, with the remaining Rs 25,184 crore going to the second phase, according to Fadnavis.

Neither Tower Semiconductor nor the Adani Group have released an official remark on the topic.

Although the project has been approved at the state level, the India Semiconductor Mission (ISM) and the IT Ministry are still reviewing a joint proposal submitted by Israel's Tower Semiconductor and the Adani Group, according to the report.

India's second chip production facility

If permitted, this project would be India's second chip manufacturing facility and sixth semiconductor plant, with a concentration on manufacturing, testing, or packaging silicon chips.

This facility will be established in Sanand, Gujarat, with a daily output capacity of 6.3 million chips.

India now has five government-approved semiconductor projects. In addition to a chip manufacturing center being built in Dholera, Gujarat, four chip packaging facilities are being developed. Three of these packaging plants are located in Sanand, Gujarat, and one is being developed in Morigaon, Assam. The total projected investment for these infrastructures is Rs 1.5 trillion.

The Dholera chip manufacturing factory, a joint venture between the Tata Group and Taiwan's Powerchip Semiconductor Manufacturing Corporation, has a capacity of 50,000 WSPM.