Adani Group in $10 billion JV with Israel’s Tower to set up chip plant

The Adani Group will enter into a joint venture (JV) project with Israel’s Tower Semiconductor Limited to set up a chip manufacturing plant, at a reported investment of $10 billion in Taloja, a census township in Raigad district of Navi Mumbai.

Gautam Adani’s conglomerate will execute the project under the group’s flagship, Adani Enterprises Limited.

Maharashtra Deputy Chief Minister Devendra Fadnavis confirmed the news with a post on the social media platform, X.

“One more BIG news for Maharashtra! Huge investments of total Rs 1,20,220 crore approved in today’s Cabinet Sub-Committee Meeting, with CM Eknath Shinde ji!” wrote Fadnavis.

“The detailed list of approved investments is as follows:
Tower Semiconductor with Adani Group at Taloja MIDC, Panvel.
Investment — Total: Rs 83,947 crore (10 Billion USD)
[Phase 1: Rs 58,763 crore; Phase 2: Rs 25,184 crore]
Product: Analog / Mixed Signals, Semiconductor Manufacturing.
Capacity: 40,000 Wafers per month in Phase 1 & 80,000 Wafers per month after Phase 2, Employment: More than 5,000 jobs,” the Maharashtra deputy chief minister added in his X post.

The semiconductor fabrication plant is expected to add an impetus to the country’s capacity at a time when semiconductors have become important all over the world, said a Bloomberg report. Chips produced at the factory will be utilised in smartphones, cars and drones among other equipment.

The Adani Group is expected to finance the project through internal accruals as well as debt. Although Fadnavis did not reveal details about deadline for the project in his X post, sources said the plant should be ready in three to five years.