What’s the story
The Indian Semiconductor Mission (ISM) is reportedly set to receive a significant funding increase of $10 billion, according to The Economic Times.
This follows the Maharashtra government‘s approval of a joint fabrication unit by Tower Semiconductor and Adani Group.
This second-phase funding is necessary as the central government is currently assessing several projects, including the newly approved facility.
The new funding under the ISM is needed as the $11 billion funds approved under the initial phase have been depleted.
Tower-Adani plant to create 5,000 jobs
On September 5, the Maharashtra government approved a semiconductor fabrication unit to be jointly established by the Adani Group and Israel-based Tower Semiconductor.
The project, located in Panvel, Mumbai, represents an investment of about ₹83,947 crore.
It is divided into two phases with ₹58,763 crore allocated for Phase 1 and ₹25,184 crore for Phase 2.
This initiative aims to create 5,000 jobs and produce 80,000 wafers month, positioning Maharashtra as a key player in the global semiconductor industry.
ISM’s funding history and previous approvals
The ISM was launched in December 2021 with a ₹76,000 crore chip incentive scheme, and a 50% subsidy on capital expenditure for plant setup.
In February 2024’s interim budget, an additional ₹6,903 crore was announced.
By March 2024, three major projects received approval under this scheme: CG Power’s ₹7,600 crore chip packaging facility in Gujarat‘s Sanand with Japan’s Renesas Electronics; Tata Group’s ₹27,000 crore chip assembly plant in Assam; and Tata Electronics’s ₹91,000 crore plant with Taiwan-based Powerchip in Gujarat.
