The Maharashtra cabinet panel has approved a significant $10 billion (₹83,947 crore) investment proposal for a semiconductor chip manufacturing unit to be established by a joint venture between Tower Semiconductor and the Adani Group. The project is set to be located in Taloja, in the Panvel area of Navi Mumbai's suburbs within the Raigad district.
This facility will have an initial capacity of 40,000 wafer starts per month (WSPM) in its first phase, with the potential to scale up to 80,000 WSPM overall. The investment will be split into two phases, with ₹58,763 crore allocated for the first phase and ₹25,184 crore for the second, according to Maharashtra's deputy chief minister, Devendra Fadnavis.
While the state has given the green light, the project still awaits approval from the India Semiconductor Mission (ISM) and the Ministry of Electronics and Information Technology, as applicants seeking incentives under the central government's semiconductor initiative require ISM's sanction. If cleared, this venture would become India’s second chip manufacturing facility and the sixth semiconductor plant in the country, including those dedicated to manufacturing, testing, and packaging silicon chips.
This development follows the Union Cabinet's approval of a ₹3,307 crore outsourced assembly and testing unit proposal by Kaynes Semicon earlier in the week. Kaynes will be setting up its OSAT unit at Sanand in Gujarat, with a capacity of producing 6.3 million chips per day.
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