The Adani-Tower fab project indicates steady progress, but achieving self-reliance in producing advanced chips is a complex, long-term goal.
Adani Group, India’s global billionaire conglomerate, has hinted that it will make an initial investment of $3 billion for its new semiconductor manufacturing unit over the next 2-3 years. Spearheaded by Gautam Adani, the business group is well-known for its billions of investments in India’s renewable energy sector. Besides its high growth in the energy transition, Gautam Adani also wants to take a significant leap in India’s semiconductor industry to help the nation lead the global value chain.
According to media reports, the business conglomerate is discussing joint ventures with two Israeli companies to set up the chip facility. Reports also highlighted that the first semiconductor unit by Adani Group will be set up and completed in Maharashtra by 2027 with an investment worth $7-8 billion. The initial investment of $3 billion will be used to set up the unit and buy equipment from the West Asian company Tower Semiconductor.
A month ago, the state cabinet in Maharashtra approved the much-touted semiconductor fabrication facility by the Adani Group and Israel-based Tower Semiconductor, backed by an investment of around $10 billion. The JV has also been given a clean nod by the India Semiconductor Mission (ISM). Still, Deputy Chief Minister Devendra Fadnavis on X clarified that the unit will be set up in two phases.
The first phase of the plant is expected to produce 40,000 chip wafers monthly, while the second phase would have an 80,000-capacity production per month. Maharashtra is also aiming to lead the semiconductor rat race, with Sachin Tendulkar-funded RRP electronics approved by the state government to set up a new chip unit and now the Adani group with two joint ventures. The Adani-Tower JV is expected to create 5,000 jobs during the project’s first phase.
