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

Adani Group, one of the country’s biggest business groups, and Israel’s Tower Semiconductor have tied up to set up a semiconductor plant in Maharashtra. About 10 billion dollars will be invested 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 Semiconductor I want to create great power. The initial capacity of this semiconductor plant to be set up in Maharashtra will be 40,000 wafers. The country’s semiconductor market is expected 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 the entry of Adani Group into a new segment. Adani Group has presence in businesses like ports and transmission.

The semiconductor segment is undergoing changes due to tensions between America and China. During Prime Minister Narendra Modi’s two-day visit to Singapore this week, both the countries have signed an agreement 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 said that India and Singapore will also work together in cyber security, fifth generation mobile network, super computing and Artificial Intelligence (AI).

Supply in the international chip market has been affected. India, Singapore and Malaysia can benefit from this. This year the sales of the international chip market may reach approximately $588 billion. To avoid geopolitical risks, Western countries and China are trying to create separate supply chains. The semiconductor industry in India is in its nascent stage. However, Singapore is playing an important role among the countries in this segment. Some of the largest 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 semiconductor manufacturing in India. Singapore specializes in memory chips and mature logic processors used in electronic devices and automobiles. India can benefit from this in rapidly expanding the semiconductor industry.

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