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Adani Pauses $10 Billion Chip Project with Israel's Tower Semiconductor Amid Demand Concerns

Adani Pauses $10 Billion Chip Project with Israel's Tower Semiconductor Amid Demand Concerns

Last Updated May - 01 - 2025, 05:20 PM | Source : Fela News

Gautam Adani's group has halted talks with Tower Semiconductor over a $10B chip venture, citing uncertain domestic demand and investment concerns, impacting Ind
Adani Pauses $10 Billion Chip Project with Israel's Tower Semiconductor Amid Demand Concerns
Adani Pauses $10 Billion Chip Project with Israel's Tower Semiconductor Amid Demand Concerns

Indian billionaire Gautam Adani's conglomerate has halted talks with Israel's Tower Semiconductor on a $10 billion chip manufacturing venture, citing strategic and commercial concerns, according to two sources. Maharashtra had earlier approved the project, expected to produce 80,000 wafers monthly and create 5,000 jobs, aligning with Prime Minister Modi’s goal of establishing India as a chipmaking hub.

Although Adani had been evaluating the project, internal assessments flagged concerns about limited domestic demand. “It was a strategic call. Adani decided to wait,” said one source. Another insider revealed that Adani was dissatisfied with Tower’s proposed financial input, despite the Israeli firm offering technical expertise. “Adani wanted Tower to invest more financially,” the person noted.

Neither Adani nor Tower responded to Reuters queries. The move marks a setback for Modi’s “Make in India” semiconductor ambitions, especially as India still lacks a functional chip plant. Previous plans, such as Vedanta-Foxconn’s $19.5 billion JV, collapsed in 2023. Meanwhile, Tata and Micron are moving ahead with chip projects. UBS estimates show India’s share in global semiconductor demand is just 6.5% in 2024, far behind the U.S. and China, which together command 54%.

 

Read More: PM Modi Inaugurates First WAVES Summit in Mumbai to Transform India's Media & Entertainment Landscape

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