Israel’s Tower Semiconductor and India’s Adani Group are set to invest 839.47 billion rupees ($10 billion) in a semiconductor manufacturing project in Maharashtra. The initiative highlights India’s push to become a global hub for chip production, despite previous challenges such as Foxconn’s withdrawal from a $19.5 billion joint venture with Vedanta and stalled plans by ISMC to invest $3 billion.

India’s Semiconductor Market Outlook

India anticipates its semiconductor market will reach $63 billion by 2026, signaling significant growth and opportunities in the sector.

Details of the New Project

The semiconductor plant in Maharashtra will initially produce 40,000 wafers. The project is part of a broader investment strategy in the state, which also includes the establishment of two new electric vehicle manufacturing units. Skoda-Volkswagen will invest 150 billion rupees in an electric vehicle plant, while Toyota-Kirloskar will allocate 212.73 billion rupees for hybrid and electric vehicle production.

Economic Impact

The projects approved on Thursday are expected to generate 29,000 jobs, marking a substantial boost to the local economy.