Adani Group Pauses $10 Billion Semiconductor Venture with Israeli Company
Image source: www.adani.com
In a notable shift, the Adani Group has paused its $10 billion semiconductor manufacturing project in collaboration with Israel’s Tower Semiconductor. This venture, approved by the state of Maharashtra, aimed to produce 80,000 wafers monthly and create 5,000 jobs, aligning with India’s ambition to become a global chipmaking hub.
The key stakeholders are the Adani Group, one of India’s largest conglomerates, and Tower Semiconductor, an Israeli company specializing in analog integrated circuits. The partnership was expected to combine Adani’s infrastructure capabilities with Tower’s technological expertise.
The decision to pause the project was reported on May 1, 2025, marking a significant development in India’s semiconductor industry efforts.
The proposed semiconductor fabrication facility was to be established in Maharashtra, a state that has been proactive in attracting high-tech investments.
Adani’s internal evaluation raised concerns about the project’s commercial viability. Uncertainties regarding domestic demand for semiconductors and Tower’s limited financial commitment were significant factors. While Tower was set to provide technological expertise, Adani expected more substantial investment from its partner.
This pause represents a potential setback to India’s “Make in India” semiconductor strategy, especially following the collapse of a $19.5 billion Vedanta-Foxconn joint venture in 2023. Currently, India lacks an operational chipmaking facility, though notable projects by Tata and Micron are underway. UBS estimates that India accounts for only 6.5% of global semiconductor demand, compared to 54% from the U.S. and China, underscoring the sector’s nascent status in the country.
While the Adani-Tower project is on hold, the broader vision for India’s semiconductor industry remains intact. The government continues to encourage investments in this sector, recognizing its strategic importance. However, this development highlights the challenges in establishing a robust semiconductor ecosystem, including securing committed partnerships and ensuring market demand.
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- News Writer
- Saksham Mehta is a journalism graduate from Delhi University and a PGD student in Digital Media at IIMC New Delhi. Passionate about storytelling and news, he is a published author with Zee business. With a keen interest in analytical reporting, digital media, and financial journalism. Saksham is dedicated to making an impact in the evolving world of news and storytelling.
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