Mumbai, India September 6th 2024– The Maharashtra cabinet has approved the establishment of a semiconductor fabrication unit in Panvel, Mumbai, to be jointly developed by the Adani Group and Israel-based Tower Semiconductor. The project, which requires approval from the central government’s India Semiconductor Mission (ISM), will involve an investment of approximately Rs 83,947 crore ($10 billion).
The unit will be developed in two phases, with the first phase seeing an investment of Rs 58,763 crore and producing 40,000 semiconductor wafers monthly. The second phase, with an investment of Rs 25,184 crore, will increase the plant’s wafer capacity to 80,000 per month. The project is expected to create over 5,000 direct jobs.
The unit will be located at the Maharashtra Industrial Development Corporation (MIDC) Taloja Industrial Area, which already houses a diverse range of industries and firms. If approved, the Panvel plant will become the sixth semiconductor chip unit in India, following the approval of Tata’s Dholera plant in February and a chip plant by Kaynes Semicon in Sanand, Gujarat, earlier this week.
The development follows the Union Cabinet’s approval of the first proposal for a semiconductor unit in Sanand by US-based memory chip giant Micron in June 2023. In February, three additional semiconductor units received approval, including Tata Electronics’ semiconductor fab in Dholera, Gujarat, and a testing and assembly unit in Morigaon, Assam, as well as CG Power’s outsourced semiconductor assembly and test (OSAT) unit in Sanand.
The central government has stated that construction of these four semiconductor units is progressing rapidly, with a robust semiconductor ecosystem emerging around them. These four units are anticipated to attract an investment of nearly Rs 1.5 trillion and have a combined capacity of approximately 70 million chips per day.
