Adani Group and Israel’s Tower Semiconductor will invest $10 billion (roughly Rs. 83,958 crore) for a semiconductor project in India’s western state of Maharashtra, chief minister of Maharashtra said in a post on X on Thursday.
India has taken steps to encourage global companies to set up their manufacturing units in the country under India’s flag ship program Make In India.
Prime Minister Narendra Modi aiming to make the country a chipmaker for the world despite initial setbacks from various chip making company.
Foxconn withdrew in July last year from a $19.5 billion (roughly Rs. 1,63,718 crore) semiconductor joint venture with Indian conglomerate Vedanta and ISMC plans a venture between Abu Dhabi-based Next Orbit Ventures and Tower Semiconductor, to invest $3 billion (roughly Rs. 25,187 crore) in India, but it has been stalled.
Still, India trying and expects its semiconductor market to be worth $63 billion (roughly Rs. 5,28,937 crore) by 2026.
This is a huge step for Gautam Adani to move into semiconductor chip manufacturing, whose conglomerate has businesses across ports, power utilities, transmission and coal trading.
The $10 billion (roughly Rs. 83,958 crore) semiconductor plant in Maharashtra will initially have a capacity of 40,000 wafers, the state’s deputy chief minister Devendra Fadnavis said in a post on X
Chief Minister Ehnath Shinde said in a social media post that projects worth 1.17 trillion rupees were approved on Thursday, which will create 29,000 jobs in the state.
Two new electric vehicle manufacturing units will also be set up in the state, with Skoda-Volkswagen investing 150 billion rupees for its plant to produce electric vehicles and hybrids.
Toyota-Kirloskar will dole out 212.73 billion-rupees to manufacture hybrid and electric vehicles at its plant in the state.
Adani group, Tower Semiconductor, Skoda-Volkswagen and Toyota-Kirloskar did not immediately respond to a request for comment from Reuters.
