Maharashtra Cabinet panel on 05 September, 2024 approved a USD 10-billion (Rs 83,947 crore) investment proposal by the Tower Semiconductor-Adani Group joint venture (JV) to set up a semiconductor chip manufacturing plant in Panvel in Raigad district.

The semiconductor manufacturing unit at Taloja will have a total capacity of 40,000 wafer starts per month (WSPM) in the first phase and an overall capacity of 80,000 WPSM. Of the total investment in the project, the first phase will see an infusion of Rs 58,763 crore, and the remaining Rs 25,184 crore in the second phase. However, currently a joint application by Israel's Tower Semiconductor and Adani Group is under consideration by the India Semiconductor Mission (ISM) and the IT Ministry.

If approved, the project will be India's second chip manufacturing facility.  Earlier this week, the Union Cabinet had approved a Rs 3,307-crore outsourced assembly and testing unit proposal by Mysore-based Kaynes Semicon. 

Of the five centrally approved semiconductor projects, a chip fabrication unit is being set up at Dholera in Gujarat, and chip packaging units are being set up at Sanand in Gujarat and one at Morigaon in Assam. These involve a cumulative investment of Rs 1.50 lakh crore.