Adani Halts Talks on $10 Billion Chip Venture with Tower Semiconductor

Gautam Adani's group has paused discussions with Israel's Tower Semiconductor for a $10 billion chip project. The decision follows an internal assessment citing uncertain demand and insufficient financial commitment from Tower. This move challenges India's ambition to become a chipmaking hub and impacts Modi's 'Make in India' strategy.

The Adani Group has put a hold on talks with Israel's Tower Semiconductor regarding a $10 billion semiconductor project. Sources indicate the strategic pause comes as Adani re-evaluates the demand potential and financial implications of the collaboration.

The proposed venture, which had received initial approval from Maharashtra state, aimed to produce 80,000 wafers each month and create 5,000 jobs. This development was intended to bolster India's chipmaking ambitions under Prime Minister Narendra Modi's 'Make in India' initiative.

While Tower was expected to contribute technological expertise, Adani reportedly sought greater financial investment from its partner. This rethinking follows setbacks in other major semiconductor projects in India, challenging the country's efforts to establish itself as a key player in global chip manufacturing.

(With inputs from agencies.)