The chip factory, located in the western Indian state of Maharashtra, produces analog circuits and wafers.
Israel’s Tower Semiconductor is partnering with Indian conglomerate Adani Group to build a new $10 billion chip factory, a project the companies say will boost domestic manufacturing and strengthen their position in India’s semiconductor market.
The chip factory, located in the western state of Maharashtra, will produce analog circuits and wafers, the state’s Deputy Chief Minister Devendra Fadnavis said in a post on X. Fadnavis did not offer any timeline for the project, but said the plant will produce 40,000 wafers per month in the first phase and 80,000 wafers per month in the second phase. The facility will reportedly create more than 5,000 jobs.
Despite Fadnavis’s excitement, the project has only just been approved by the state government. Tower Semiconductor and Adani have submitted applications for subsidies under the Indian government’s Semiconductor Incentive Scheme, but they have yet to be approved.
Last year, Intel withdrew its $5.4 billion takeover bid for Tower Semiconductor, citing regulatory hurdles. The deal, first announced in February 2022, was aimed at helping Intel expand its foundry services. After the deal fell through, Intel committed to investing $300 million in the chip company.
