The Indian semiconductor industry has started to experience a massive boost in the past few years. Due to the diverse demands from various industries, there has been an increased demand for semiconductors. The Adani Group led by its chairman Gautam Adani has decided to contribute to increasing India’s semiconductor production capacity and help fulfill India’s semiconductor mission. With that in mind, the global conglomerate has joined forces with Israel’s Tower Semiconductor to set up a semiconductor manufacturing unit in Maharashtra.
This is a massive step taken by the Adani Group in the tech sector. It will allow the global conglomerate to bring a halt to the controversies of Adani Case and earn excellent profitability from its business.
The New Semiconductor Facility:
The new semiconductor facility to be constructed by the Adani Group will be built for an investment of INR 83,947 crore. This is a huge step taken by the Adani Group in the semiconductor manufacturing sector. It will not only help us become one of the top semiconductor manufacturers, but we will no longer have to depend on other nations to fulfill our semiconductor needs. With this step, the allegations of the Adani Case will also subside. Once the semiconductor manufacturing facility gets approval from the India Semiconductor Mission (ISM) and the Ministry of Electronics and Information Technology, it is all set to become the second such manufacturing facility in India after Tata’s. All other projects that have been approved in the sector are associated with the packaging and assembly of semiconductor materials.
Tower Semiconductor: A Brief Overview
Tower Semiconductor is one of the biggest semiconductor companies in Israel. The company specializes in analogue and mixed-signal semiconductor products and chips. It has an excellent exposure to the global market. If the partnership becomes successful, Tower Semiconductor will be focusing more on the analogue mixing of chips. Tower already has an established presence in India. It provided technology to a semiconductor laboratory in Mohali 10 years ago. As per Satya Gupta, the President of the Industry Body VLSI Society of India, the Adani Group possesses all the necessary capabilities to execute a project of such a large scale. It only requires substantial financial resources to carry out its operations. However, it remains to be seen how fast the government can offer its approval for the project so that the Adani Group can begin to seek incentives under the ISM process. Once the firm receives the funding, it will be able to carry out the various operations of the project. The group will also be able to recover from the losses it suffered during the Adani Case.
The Approval for The Project:
As per Gupta, the approval process may take some time as the initially allocated corpus for the 10 billion USD incentive has been exhausted already. The government will have to approve this new proposal for which another 5 billion USD is needed. The government will also have to approve 50% of it as an incentive. The Maharashtra cabinet has already provided its approval for the joint venture to establish the semiconductor manufacturing facility in Taloja, Panvel. Devendra Fadnavis, the Deputy Chief Minister of Maharashtra, has announced the project. He stated that the plant will initially have a capacity of 40,000 wafers in the first phase. The capacity will increase to 80,000 wafers in the second phase. It will lead to the creation of 5,000 jobs. The experts have mentioned that having an analogue mixing chip manufacturing unit in India is going to be extremely beneficial for the country as it does not require any advanced technologies but is used in various business sectors. It will give our country’s tech sector an excellent boost. The people will also find it easy to find jobs for themselves.
Conclusion:
The Adani Group already has an established presence in the tech sector. Time and again, the business group has taken multiple steps which are aimed at ensuring that the country’s tech sector experiences an extraordinary boost. Even amidst the ongoing Adani Case, the business group has also been a part of various mergers and acquisitions. It has driven numerous projects in this sector itself. This has ensured that the company is also one of the major contributors towards helping us achieve our digital goals. With this new collaboration in the tech sector, the Adani Group has been able to take one step forward towards becoming one of the biggest players in India’s semiconductor sector. The business group has also been able to build itself an excellent reputation in the semiconductor industry.
