Israel's Tower Semiconductor, Adani plan $10 bln chip project in India

Israel's Tower Semiconductor and Adani Group will invest Rs 83,947 crore ($10 billion) for a semiconductor project in India's western state of Maharashtra , its chief minister said in a post on X on Thursday.

India has taken steps to encourage global companies to set up their manufacturing units in the country, with Prime Minister Narendra Modi aiming to make the country a chipmaker for the world despite initial setbacks.

Foxconn withdrew in July last year from a $19.5 billion semiconductor joint venture with Indian conglomerate Vedanta, and plans by ISMC, a venture between Abu Dhabi-based Next Orbit Ventures and Tower Semiconductor, to invest $3 billion in India, have been stalled.

Still, India expects its semiconductor market to be worth $63 billion by 2026.

Semiconductor manufacturing marks the latest foray for billionaire Gautam Adani, whose conglomerate has businesses across ports, power utilities, transmission and coal trading.

The $10 billion semiconductor plant in Maharashtra will initially have a capacity of 40,000 wafers, the state's deputy chief minister Devendra Fadnavis said in a post on X.

Chief Minister Ehnath Shinde said in a social media post that projects worth Rs 1,17,000 crore were approved on Thursday, which will create 29,000 jobs in the state.

Two new electric vehicle manufacturing units will also be set up in the state, with Skoda-Volkswagen investing Rs 15,000 for its plant to produce electric vehicles and hybrids.

Toyota-Kirloskar will dole out Rs 21,273 crore to manufacture hybrid and electric vehicles at its plant in the state.

Adani group, Tower Semiconductor, Skoda-Volkswagen and Toyota-Kirloskar did not immediately respond to a request for comment from Reuters.