In a significant development for India’s tech industry, the state of Maharashtra has greenlit a $10 billion semiconductor fabrication plant. The project, a collaboration between Israel’s Tower Semiconductor and India’s Adani Group, aims to ramp up the country’s chip production capabilities.
Maharashtra’s Deputy Chief Minister, Devendra Fadnavis, announced that the state cabinet has given its approval for the facility, which will be built in two phases. The first phase will involve an investment of INR587.63 billion and produce 40,000 wafers per month, according to Fadnavis’ post on social media platform X.
“One more BIG news for Maharashtra! Huge investments of total ₹ 1,20,220 crore approved in today’s Cabinet Sub-Committee Meeting,” Fadnavis stated, referencing the project, which will be located in Taloja MIDC, Panvel.
Expansion Plans and Future Approvals
The second phase of the project will double the plant’s capacity to 80,000 wafers per month. However, the Tower-Adani venture is still awaiting approval under the central government’s India Semiconductor Mission (ISM), which aims to position India as a key player in global semiconductor manufacturing.
Once approved, the Panvel facility will be the second semiconductor fabrication unit in India, following Tata’s Dholera plant, which received Union government approval in February 2024. Additionally, it would become the sixth chip manufacturing plant in the country, joining other projects such as the recently announced Kaynes chip plant in Sanand, Gujarat.
This initiative marks another step toward India’s goal of becoming a major semiconductor producer, addressing the growing global demand for chips.
The semiconductor fabrication unit is part of India’s broader push to reduce dependency on chip imports and establish itself as a global player in the semiconductor industry. With the growing demand for electronics and electric vehicles, therefore, this initiative aims to strengthen domestic production capabilities and attract foreign investment. As a result, it positions India as a key hub for technological innovation and manufacturing.
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