Billionaire Gautam Adani's Adani Group has paused its $10 billion semiconductor joint venture with Israel's Tower Semiconductor, according to a Reuters report. The decision followed an internal review that found the project lacked current strategic and commercial feasibility.

Approved by Maharashtra in September last year, the proposed facility was expected to produce 80,000 wafers monthly and generate 5,000 jobs. It was considered a key component of Prime Minister Narendra Modi's 'Make in India' initiative to establish India as a global semiconductor hub.

Initially under consideration, the project has now been put on hold due to concerns about domestic demand and unresolved financial issues. Sources told Reuters that the Adani Group was dissatisfied with Tower Semiconductor’s level of financial investment, despite its contribution of technology. “Adani wanted Tower to have more skin in the game,” a source said.

Tower Semiconductor, which focuses on analog and mixed-signal chips for the automotive industry, had not committed enough financially to meet Adani's expectations. India, despite government efforts, still lacks an operational semiconductor fabrication facility.

In 2023, a $19.5 billion venture between Vedanta and Foxconn was also cancelled. However, projects by the Tata Group and U.S.-based Micron continues to progress.