Israel's Tower Semiconductor, Adani plan $10 bln chip project in India
Adds detail, background
By Tanvi Mehta
NEW DELHI, Sept 6 (Reuters) -Israel's Tower Semiconductor TSEM.TA and Adani Group will invest 839.47 billion rupees ($10 billion) for a semiconductor project in India's western state of Maharashtra, its chief minister said in a post on X on Thursday.
India has taken steps to encourage global companies to set up their manufacturing units in the country, with Prime Minister Narendra Modi aiming to make the country a chipmaker for the world despite initial setbacks.
Foxconn withdrew in July last year from a $19.5 billion semiconductor joint venture with Indian conglomerate Vedanta, and plans by ISMC, a venture between Abu Dhabi-based Next Orbit Ventures and Tower Semiconductor, to invest $3 billion in India, have been stalled.
Still, India expects its semiconductor market to be worth $63 billion by 2026.
Semiconductor manufacturing marks the latest foray for billionaire Gautam Adani, whose conglomerate has businesses across ports, power utilities, transmission and coal trading.
The $10 billion semiconductor plant in Maharashtra will initially have a capacity of 40,000 wafers, the state's deputy chief minister Devendra Fadnavis said in a post on X.
Chief Minister Ehnath Shinde said in a social media post that projects worth 1.17 trillion rupees were approved on Thursday, which will create 29,000 jobs in the state.
Two new electric vehicle manufacturing units will also be set up in the state, with Skoda-Volkswagen investing 150 billion rupees for its plant to produce electric vehicles and hybrids.
Toyota-Kirloskar will dole out 212.73 billion-rupees to manufacture hybrid and electric vehicles at its plant in the state.
Adani group, Tower Semiconductor, Skoda-Volkswagen VOWG_p.DE and Toyota-Kirloskar 7203.T did not immediately respond to a request for comment from Reuters.
($1=83.9020 Indian rupees)
Reporting by Sakshi Dayal and Tanvi Mehta; Editing by Clarence Fernandez and David Evans
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.