Adani Group puts on hold $10 bn chip deal with Israel's Tower Semiconductor

In September last year, Maharashtra had approved the proposed chip-making facility, which was expected to manufacture 80,000 wafers per month and create 5,000 jobs.

The project was seen as a crucial part of Prime Minister Narendra Modi’s ambition to position India as a global semiconductor hub under the 'Make in India' campaign.

 While the Adani Group had initially stated the project was under consideration, the latest assessment led to the company stepping back, citing demand-related concerns, especially within India.

According to the report, the talks could potentially resume in the future.

It was further reported that financial disagreements played a role in the decision. According to the report, Adani Group was not satisfied with the financial commitment that Tower Semiconductor was willing to make.

 In 2023, a proposed $19.5 billion joint venture between Vedanta and Taiwan's Foxconn was shelved amid government concerns over costs and delayed approvals.

 Meanwhile, other key semiconductor projects continue to move forward. The Tata Group is currently working on an $11 billion chip manufacturing and testing facility, and US-based Micron is investing $2.7 billion in a chip packaging plant in Gujarat.