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

Tower Semiconductor

06/09/2024 09:49

(Adds detail, background)
    By Tanvi Mehta
       NEW DELHI, Sept 6 (Reuters) - Israel's Tower
Semiconductor  TSEM.TA  and Adani Group will invest 839.47
billion rupees ($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 1.17 trillion rupees 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 150 billion
rupees for its plant to produce electric vehicles and hybrids.
     Toyota-Kirloskar will dole out 212.73 billion-rupees to
manufacture hybrid and electric vehicles at its plant in the
state.   
    Adani group, Tower Semiconductor, Skoda-Volkswagen
 VOWG_p.DE  and Toyota-Kirloskar  7203.T  did not immediately
respond to a request for comment from Reuters. 
    
($1=83.9020 Indian rupees)

 (Reporting by Sakshi Dayal and Tanvi Mehta; Editing by Clarence
Fernandez and David Evans)
 ((Sakshi.Dayal@thomsonreuters.com;))