Israel’s Tower Semiconductor has teamed up with Indian conglomerate Adani Group to establish a $10 billion chip facility in India. This venture aims to strengthen India’s position in the semiconductor market by enhancing domestic manufacturing capabilities.
Planned for Maharashtra, the chip plant will focus on producing analog circuits and wafers. The Deputy Chief Minister of Maharashtra, Devendra Fadnavis, shared on X that the plant’s initial phase targets a production of 40,000 wafers per month, with a planned increase to 80,000 wafers per month in the following phase. This project is also expected to create over 5,000 jobs.
Though cleared by the state government, the project awaits approval for subsidies under the national chip incentive plan. As Fadnavis did not provide any schedule, the timeline for the project remains uncertain.
Recently, Intel canceled a $5.4 billion acquisition attempt of Tower Semiconductor due to regulatory barriers. This deal, announced in February 2022, aimed to enhance Intel’s foundry services. Following the failed acquisition, Intel affirmed its support by committing $300 million in investment to Tower Semiconductor.
With the burgeoning global need for semiconductors, such initiatives in India could significantly impact localized production, reducing dependency on international markets. However, the venture’s success hinges on governmental support, regulatory approvals, and efficient execution. The semiconductor market’s competitive nature further underscores the importance of strategic planning and timely implementation for projects like these.
