Tower wins state approval for US$10 billion Indian fab
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The Indian state of Maharashtra, has approved a plan for a US$10 billion chip plant to be set up by foundry Tower Semiconductor and the Indian conglomerate Adani Group.
However, the plan still awaits central government approval to qualify for subsidies under an Indian government scheme. Without the substantial subsidies – potentially more than 50 percent of the cost – the project could stall.
Tower Semiconductor, an analog, mixed-signal and power foundry, has been trying to open up manufacturing in India since 2017 but has been frustrated by the slow nature of Indian bureaucracy. A previous plan to build an analog and mixed-signal fab called Indian Semiconductor Manufacturing Co. (ISMC) had earmarked land in Mysuru’s Kochanahalli Industrial area in the state of Karnatika but appeared to collapse due to a lack of an Indian industrial company in the consortium
The Adani-Tower proposal is for a wafer fab to be constructed in Panvel, in the Raigad district of Maharashtra. It comes in two phases each creating a module with a manufacturing capacity of 40,000 wafer starts per month.
There would be investment of 587 billion rupees (about US$7 billion) in the first phase and 251 billion rupees (about US$3 billion) in the second phase, thereby a total of 839 billion rupees (about US$10 billion).
The latest plan comes a year after Taiwan’s Foxconn has pulled out of a joint venture with mining-to-oil conglomerate Vedanta that was bidding to set down a wafer fab in Gujurat.
In March 2024 Indian Prime Minister Narendra Modi helped lay the foundation stones for joint venture wafer fab belonging to Tata Electronics and Taiwan’s PSMC in Dholera, Gujurat and for a chip packaging facility in Jagiroad, Assam.
Related links and articles:
Tower proposes US$8 billion Indian wafer fab, says report
Foxconn pulls out of Indian wafer fab venture
Tata’s Indian fab to produce silicon in 2026, say reports
Tower executives in talks to rekindle India fab plans
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