Semiconductor mission could get $10-billion boost to fund more chip projects: Report

On September 5, Maharashtra government cleared a semiconductor fabrication unit to be set up jointly by the Adani Group and Israel-based Tower Semiconductor for an investment of about Rs 83,947 crore ($10 billion) in Panvel, Mumbai.

Following the Maharashtra government’s approval of Tower Semiconductor and Adani Group’s joint fabrication unit in the state, the Indian Semiconductor Mission (ISM) could receive a funding boost of $10 billion, The Economic Times reported on September 7.

The new funds will be required as the Centre is currently evaluating several projects, including the Tower-Adani plant in Maharashtra, ET said.

On September 5, the Maharashtra government cleared a semiconductor fabrication unit to be set up jointly by the Adani Group and Israel-based Tower Semiconductor for an investment of about Rs 83,947 crore ($10 billion) in Panvel, Mumbai. The semiconductor manufacturing project is divided into two phases: Rs 58,763 crore for Phase 1 and Rs 25,184 crore for Phase 2. This initiative aims to create 5,000 jobs and establish Maharashtra as a prominent player in the global semiconductor industry.

The mission, whose funds have been nearly exhausted, was launched in December 2021 with the announcement of a Rs 76,000-crore chip incentive scheme and a 50 percent subsidy on capital expenditure for plant setup. In the interim budget of February 2024, an additional Rs 6,903 crore was announced.

In March 2024, three major projects received approval under the scheme: CG Power's proposed Rs 7,600-crore chip packaging facility in Gujarat's Sanand in partnership with Japan's Renesas Electronics; Tata Group's Rs 27,000-crore chip assembly plant in Morigaon, Assam; and Tata Electronics' Rs 91,000-crore plant in collaboration with Taiwan-based Powerchip in Dholera, Gujarat.