Wed Sep 18 01:20:06 UTC 2024: ## Adani Group to Enter Semiconductor Manufacturing with Israeli Partner
**New Delhi:** The Adani Group, India’s ports-to-cement conglomerate, is set to enter the semiconductor manufacturing sector, partnering with Israel’s Tower Semiconductor to build a fabrication plant in Maharashtra. The project, with a total investment of ₹83,947 crore, will manufacture microchips for Adani’s internal businesses, as well as global and domestic customers.
The plant, located in Raigad district, will initially have a capacity of 40,000 wafer starts per month (WSPM), which will be doubled in the second phase. Adani will act as a contract manufacturer, offering foundry services to global clients, while Tower will contribute its expertise in optical and analog mixed-signal chips.
The partnership aims to leverage Tower’s existing contracts with chip manufacturers, tapping into the “fabless” model where companies design chips but outsource manufacturing. This venture is expected to become one of Adani’s largest businesses, serving both in-house needs and external demand.
The government has been actively encouraging domestic semiconductor manufacturing, aiming to create a $500 billion electronics industry by 2030. The partnership will also secure crucial government contracts in digital transformation across sectors like railways, aviation, defence, and telecommunications.
Industry experts believe this move is a significant step towards India’s semiconductor ambitions. The domestic demand for chips is expected to exceed $100 billion by 2030, presenting a lucrative market for Adani and Tower. This partnership will also address concerns about global chip supply chain dependence and geopolitical risks.
While Adani has confirmed exploring the project, official details and government approval are still pending. This venture joins other Indian conglomerates like Tata, Murugappa, and HCL in their pursuit of semiconductor manufacturing, signaling a major shift in the Indian electronics landscape.
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