On the employment front, the project is expected to generate more than 5,000 direct jobs, said Fadnavis. Photo: Bloomberg
The Maharashtra state cabinet on Thursday approved the setting up of a semiconductor fabrication unit to be established jointly by Israel-based Tower Semiconductor and India’s Adani Group, with an investment of about Rs 83,947 crore ($10 billion) in Panvel, Mumbai.
According to a post by state deputy chief minister Devendra Fadnavis on social media platform X, the project, which is yet to be approved under the Centre’s India Semiconductor Mission (ISM), will be developed in two phases. The first phase will see an investment of Rs 58,763 crore and generate a capacity of producing 40,000 wafers per month. The second phase, with an investment of Rs 25,184 crore, will take the total wafer capacity of the plant to 80,000 per month.
On the employment front, the project is expected to generate more than 5,000 direct jobs, said Fadnavis.
The unit is planned to be set up at the Maharashtra Industrial Development Corporation (MIDC) Taloja Industrial Area, which already hosts a variety of industries and firms.
The Tower-Adani project will be the second fab project in the country, after Tata’s Dholera plant, which was approved by the Union government in February this year. If approved under the ISM, the Panvel plant will be the sixth semiconductor chip unit in the country, following the recently announced Kaynes chip plant in Gujarat’s Sanand.
In June 2023, the Cabinet approved the first proposal for setting up a semiconductor unit in Sanand by US-based memory chip giant Micron.
In February this year, three more semiconductor units received approval. Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and a testing and assembly unit in Morigaon, Assam. Additionally, CG Power is establishing an outsourced semiconductor assembly and test (OSAT) unit in Sanand.
“Construction of all four semiconductor units is progressing at a rapid pace, and a robust semiconductor ecosystem is emerging near the units. These four units will bring an investment of almost Rs 1.5 trillion. The cumulative capacity of these units is about 70 million chips per day,” stated an official government press release.
First Published: Sep 06 2024 | 10:32 AM IST
