The 10 billion USD joint fab proposal by India’s Adani Group and Israel’s Tower Semiconductor is currently at the appraisal stage under the India Semiconductor Mission (ISM). The Ministry of Electronics and Information Technology (MeitY) has already asked for various details from the entities involved in the project. This is a big step taken by the Adani Group towards bringing about technological enhancements in India. It will ensure that our country achieves excellent economic growth. We will also no longer have to remain dependent on foreign countries to import semiconductors for our electronics industry. The Adani Group Controversies will also gradually subside because of the conglomerate’s extraordinary contributions to the tech sector.
The Submission of Proposal
Tower has already submitted a proposal for the semiconductor project but as of now, more details are required for further proceedings of the project which is why the authorities have already requested the business groups to provide the details on the project. Once the details are provided, they will be examined further. Only after that, the final approval will be provided. The Maharashtra cabinet has already given its nod to the semiconductor fab which is going to be established jointly by Tower Semiconductor and the Adani Group in Panvel, Mumbai. This project would require an investment of INR 83,947 crore which is approximately 10 billion USD. However, the proposal is yet to receive approval from Meity.
What Does Akash Tripathi Have to Say About the Project?
Akash Tripathi who heads the INR 75,000 crore ISM said that there are 20 more semiconductor proposals in the pipeline which will be approved only if the necessary conditions are met. The government also has plans to offer its support to the semiconductor industry for 10 years. Under the ISM, around 20 proposals have been submitted which include compound semiconductors and Outsourced Semiconductor Assembly and Test (OSAT) units. The company is currently looking at developing the entire semiconductor ecosystem as only OSATs and fabs will not suffice in the long run. Instead, there is a need to build the entire ecosystem so that the industry can thrive in the future.
Tripathi has also mentioned that the government already has a vision of taking the overall dab units to double units in the country while formulating the ISM. Under the Semicon India project, it has envisioned 2-3 semicon fabs, 2-3 display fabs, and various compound semiconductor fabs. The total number is going to be in double digits. Mentioning the revamping plans of the government’s Semiconductor Laboratory in Mohali, Tripathi said there has already been a huge interest from the big private players for the project and a request for proposal will be submitted soon.
Tripathi made these announcements at a press conference organised jointly by India Cellular Electronics Association (ICEA), MeitY, and SEMI before the three-day Semicon in the India event which is supposed to be held from 11th to 13th September 2024. This is a huge event in India to attract global leaders from over 250 semiconductor companies and their ecosystems. The event is expected to witness participation from over 70 countries. This will bring about massive infrastructure development in the country. It will also give our digital infrastructure a boost.
Adani’s Interest in The Digital Sector
The Adani Group has always been deeply interested in the technological sector. Even amidst the Adani Group Controversies, the business group has taken multiple steps each of which are aimed at ensuring that the digital sector experiences a boost. Under its leadership, several data centres have been built in different corners of the country. The group also aims to take up more extraordinary ventures in this sector in the upcoming years. This will not only allow us to strengthen our economy but will also help our country in achieving financial stability in the long run.
Conclusion
By setting up a semiconductor plant in Maharashtra, the Adani Group will be able to take one step ahead towards further diversifying its portfolio. It will be able to put a stopper to the Adani Group Controversies and take our country on the path of success. The global conglomerate will also be able to earn excellent revenue from its business and become a global leader in this dynamic business landscape.
