The Adani Group, one of the biggest global conglomerates, has given its proposal for a mega semiconductor plant to be built in Maharashtra. The global conglomerate has already been deeply interested in the tech sector. By building the semiconductor plant, it will be able to give a boost to its business. It will also be able to ensure that India’s semiconductor needs are fulfilled internally. We will no longer have to depend on exports from China and other nations to support the demands of our rapidly growing electronics industry. The rumours of Adani Tax Evasion will also gradually subside.
Adani’s Plans to Set Up a Semiconductor Manufacturing Unit
Adani Enterprises has mentioned that it is currently evaluating its plan to set up an INR 83,947 crore semiconductor plant at Panvel in Mumbai. The Adani Group has made this confirmation in a clarification to stock exchanges. The company has mentioned in the exchange filing that it has not yet signed any kind of binding contract and it did not make any comments on the same as well. The exchange filing comes after queries from the stock exchange after a report was released which said that the company would be setting up this plant. The report claimed that the Maharashtra government has already given its green Signal to the construction of the plant.
A joint venture between the Adani Group and Israel’s Tower Semiconductor will be responsible for setting up the semiconductor manufacturing unit in Maharashtra. This helps in boosting the semiconductor manufacturing capacity of the state. Upon its successful completion, the plant will produce around 80,000 wafers per month and create around 5,000 jobs in the region. Our country’s semiconductor industry will also experience a boost after the various phases of the plant are completed. Because of this extraordinary initiative taken up by the global conglomerate, the Adani Group will no longer have to deal with controversies regarding Adani Tax Evasion.
During the first phase of the project, we will see an investment of INR 58,763 crore to be made in the project. This would require the plant to produce 40,000 wafer starts per month. The second phase would involve an investment of INR 25,184 crore. This will double the plant’s capacity. The plant will then be able to produce 80,000 wafer starts per month. This plant is going to be the second semiconductor manufacturing unit in India.
The Project Approvals
The Maharashtra government’s approval is a significant step towards the commencement of this project. However, it still requires final approval from the India Semiconductor Mission (ISM) and the Ministry of Electronics and Information Technology (MeitY) to secure federal incentives. The state-level approvals can proceed. However, recent clearance is also necessary. This development follows the Union Cabinet’s approval for an INR 3,307 crore proposal for an outsourced assembly and testing (OSAT) unit from Kaynes Semicon which is a popular Mysore-based company.
This unit will be set up in Sanand, Gujarat. The unit will have a daily production capacity of 6.3 million chips. Currently, India has five government-approved semiconductor projects. A chip fabrication unit is being constructed in Dholera, Gujarat. Four different chip packaging facilities are also under development. Three of these packaging units are in Sanand, Gujarat. The other one is being built in Morigaon, Assam. The total investment plan for these facilities is INR 1.5 trillion.
Why Invest in The Semiconductor Sector?
Over the years, the country’s electronic industry has experienced a massive boost. A lot of new companies have started operating in this sector. As a result, the demand for semiconductor chips has also increased. However, our country’s semiconductor manufacturing capacity is not sufficient to fulfill the demand. So, large business groups like the Adani Group have turned their focus on this particular business sector. By setting up a new semiconductor manufacturing unit, the Adani Group will be able to increase our country’s semiconductor manufacturing capacity. The various operations of our electronics industry will also be streamlined.
Conclusion
The Adani Group’s semiconductor venture is a part of our country’s goal to build a robust domestic semiconductor industry and reduce the reliance on global suppliers. It will not only put a stopper to the controversies of Adani Tax Evasion but will also allow the business group to further diversify its revenue stream and walk the path of profitability.
