Adani Group Plans $10 Billion Chip Project in Maharashtra with Israel’s Tower Semiconductor

Adani Group, one of the country’s largest business groups, and Israel’s Tower Semiconductor have tied up to set up a semiconductor plant in Maharashtra. An investment of about $10 billion will be made in this project. The central government is encouraging international companies to set up manufacturing units in the country.

Prime Minister Narendra Modi’s goal is to make the country Semiconductors The aim is to create a major force in the semiconductor plant to be set up in Maharashtra. The initial capacity of this semiconductor plant to be set up in Maharashtra will be 40,000 wafers. The country’s semiconductor market is estimated to reach $63 billion by 2026. The demand for semiconductors has increased rapidly in the last few years. However, the supply is less in comparison. This will be Adani Group’s entry into a new segment. Adani Group has presence in businesses like ports and transmission.

Due to tension between the US and China, the semiconductor segment is undergoing changes. During Prime Minister Narendra Modi’s two-day visit to Singapore this week, the two countries have agreed to increase cooperation in chip design and manufacturing. Apart from this, Singapore’s tech investment in India will also be increased. In a statement issued by the central government, it has been told that India and Singapore will also work together in cyber security, fifth generation mobile network, super computing and artificial intelligence (AI).

Supply has been affected in the international chip market. India, Singapore and Malaysia can benefit from this. This year the sales of the international chip market can reach around $ 588 billion. To avoid geopolitical risks, Western countries and China are engaged in creating separate supply chains. The semiconductor industry in India is in its initial stages. However, Singapore is playing an important role among the countries in this segment. Some of the large chip manufacturing plants in Southeast Asia are in Singapore. These include NXP Semiconductors NV to Micron Technology. Prime Minister Modi plans to make India a superpower in technology. A strong semiconductor ecosystem will be important for this. The central government has made a plan of $ 21 billion to increase the manufacturing of semiconductors in India. Singapore has expertise in memory chips and mature logic processors used in electronic devices and automobiles. India can benefit from this in expanding the semiconductor industry rapidly.

(This news has not been edited by the NDTV team. It has been published directly from the Syndicate feed.)