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Govt approves $10 billion semiconductor project by Tower and Adani

2024-09-10

In a significant move, the Maharashtra government, led by Chief Minister Eknath Shinde, has approved a $10 billion semiconductor manufacturing project by Israel's Tower Semiconductor and the Adani Group. The project, to be set up in Panvel, Raigad district, will be executed in two phases with a total investment of Rs 849.47 billion and is expected to create 15,000 jobs. This decision comes just ahead of state elections and signals a major push for semiconductor manufacturing in India.

Apart from the semiconductor project, the Maharashtra cabinet sub-committee also approved three other major projects. These include electric vehicle (EV) manufacturing plants by Skoda Auto Volkswagen India in Pune (Rs 120 billion investment, creating 1,000 jobs) and Toyota Kirloskar Motor in Chhatrapati Sambhajinagar (Rs 212.73 billion investment, creating 12,000 jobs). Raymond Luxury Cottons will also set up a textile plant in Amravati, investing Rs 1.88 billion.

The semiconductor project is seen as a significant win for Maharashtra after Vedanta-Foxconn's semiconductor plant plans in the state were scrapped in 2022. Chief Minister Shinde highlighted that these projects will not only generate employment but also elevate Maharashtra's status as a key player in semiconductor and EV production.

While the state government has given the green light, the Ministry of Electronics and IT (MeitY) has yet to approve Tower Semiconductor and Adani’s application for central subsidy under the India Semiconductor Mission. However, this collaboration marks a critical step toward boosting India's semiconductor capabilities amid global demand.

The announcement also addresses earlier political controversies when Vedanta-Foxconn shifted its $19.5 billion semiconductor project from Maharashtra to Gujarat. This had sparked criticism of the Shinde-led government, which is now aiming to make Maharashtra a hub for advanced manufacturing with these new projects.

(The Indian Express)