Tower Semiconductor, Adani seek government support for $10B chip plant in India

Located in India’s western state of Maharashtra, the chip plant will produce analog circuits and wafers

Israel’s Tower Semiconductor has partnered with Indian conglomerate Adani Group on a $10 billion project to build a new chip facility that the pair said will bolster India’s position in the semiconductor market by increasing domestic manufacturing.

Located in the country’s western state of Maharashtra, the chip plant will produce analog circuits and wafers, according to an X post from Deputy Chief Minister of the Maharashtra state Devendra Fadnavis. While Fadnavis did not share any information about the project’s timeline, he did state that the plant is expected to manufacture 40,000 wafers per month in the first phase and 80,000 wafers per month in the second phase. The facility will also reportedly create more than 5,000 jobs.

Despite Fadnavis’s excitement, the project has only been cleared by the state government; Tower Semiconductor and Adani have submitted an application for subsidies under the Indian government’s chip incentive plan, but this has yet to be approved.

Last year, Intel terminated a $5.4 billion takeover bid for Tower Semiconductor, citing regulatory hurdles. The deal, first announced in February 2022, was intended to help scale Intel’s foundry services. Following the failed acquisition, Intel committed to invest $300 million in the chip company.