The Maharashtra cabinet has approved a $10 billion semiconductor fabrication unit in Panvel, Mumbai, to be developed by the Adani Group and Tower Semiconductor. The project, requiring phased investments, aims to produce up to 80,000 semiconductor wafers monthly and generate over 5,000 jobs, subject to approval by the India Semiconductor Mission.
On Thursday, the Maharashtra cabinet sanctioned the establishment of a semiconductor fabrication unit, a collaborative initiative between the Adani Group and Israel’s Tower Semiconductor. This substantial investment, approximately Rs 83,947 crore (equivalent to $10 billion), is earmarked for the development of the facility in Panvel, Mumbai. Deputy Chief Minister Devendra Fadnavis provided insights on the project via X (formerly Twitter), indicating the unit’s development will occur in two phases. The initial phase will require an investment of Rs 58,763 crore and is projected to produce 40,000 semiconductor wafers monthly. The subsequent phase, costing Rs 25,184 crore, aims to enhance the total wafer production capacity to 80,000 per month. This venture is expected to generate more than 5,000 direct jobs, marking a significant contribution to the local economy. The chosen location for this unit is the Maharashtra Industrial Development Corporation (MIDC) Taloja Industrial Area, which is already home to various industries. If the project receives the necessary approval from the central government’s India Semiconductor Mission (ISM), it will become the second semiconductor fabrication facility in India, following Tata’s Dholera plant which gained approval in February. Additionally, it will represent the sixth semiconductor chip unit in the nation. Earlier this week, the approval was granted for a chip plant by Kaynes Semicon in Sanand, Gujarat, and in June 2023, the Union Cabinet approved the establishment of a semiconductor unit by the US-based memory chip giant Micron.
The semiconductor industry is a critical component of modern technology, serving as the backbone for a wide range of electronic devices. India’s government has been proactive in strengthening the domestic semiconductor manufacturing sector, striving to reduce reliance on imports and establish a robust ecosystem. The approval of multiple semiconductor projects across the country reflects the government’s commitment to attract substantial investments and create jobs, thereby enhancing India’s position in the global semiconductor market. Notably, Maharashtra’s initiative represents a significant step in this direction, as the state aims to emerge as a hub for semiconductor fabrication in India, complementing existing projects and fostering innovation in the technology space.
In conclusion, the approval of the semiconductor fab unit by the Maharashtra government, in collaboration with the Adani Group and Tower Semiconductor, signifies a major advancement for India’s semiconductor industry. With a planned investment of $10 billion, the project is poised to create thousands of jobs and enhance local production capabilities. If approved under the India Semiconductor Mission, this facility will not only contribute to the growing semiconductor ecosystem in India but also align with national efforts to establish the country as a formidable player in the global technology landscape.
Original Source: www.business-standard.com
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