Mumbai, India – May 2, 2025 – Adani Enterprises Ltd., led by Indian billionaire Gautam Adani, and Israel-based Tower Semiconductor have paused discussions on their proposed $10 billion semiconductor fabrication project in Maharashtra, India. The decision follows an internal strategic review, as reported by Reuters.
Announced in September 2024, the ambitious project aimed to establish a state-of-the-art wafer fabrication facility producing up to 80,000 wafers per month and creating approximately 5,000 jobs. The initiative was widely regarded as a cornerstone of Indian Prime Minister Narendra Modi’s “Make in India” and “Aatmanirbhar Bharat” (Self-Reliant India) campaigns to strengthen domestic semiconductor capabilities.
However, sources familiar with the matter revealed that Adani Enterprises concluded the venture lacked strategic and commercial justification, primarily due to India’s relatively small semiconductor demand—currently around 6.5% of global consumption. “It was more of a strategic decision. Adani evaluated it and decided, let’s wait,” a source told Reuters.
Another point of contention involved the financial structure of the partnership. While Tower Semiconductor was expected to contribute its technical expertise—including its advanced analog process platforms like SiGe, BiCMOS, RF CMOS, and MEMS—the Adani Group was reportedly seeking a higher capital commitment from Tower. “Adani wanted Tower to have more skin in the game,” another source said.
The suspension comes amid broader challenges for India’s semiconductor strategy. Despite the Indian government allocating ₹76,000 crore (approximately $10 billion) under the “Semicon India” program and securing over $20 billion in investment commitments, execution hurdles persist. A previous $19.5 billion chip venture between Vedanta and Foxconn also collapsed in 2023.
India’s lack of an operational semiconductor fabrication plant continues to hinder its ambitions, even as the country forges international partnerships—such as the 2023 MoU with the United States to foster semiconductor collaboration and supply chain development.
Despite the setback, India’s electronics industry remains optimistic. SEMI and IESA’s strategic alliance and ongoing investments are expected to continue advancing the nation’s semiconductor ecosystem. Yet, as noted by IESA President Ashok Chandak, geopolitical factors like China’s rare earth restrictions pose further supply chain risks.
While the Adani-Tower project may be on hold, stakeholders agree that a long-term roadmap remains vital to achieving India’s chip self-sufficiency goals. For now, however, the move marks a cautious recalibration by private sector leaders amid market and policy uncertainties.
