Subscribe to enjoy similar stories. New Delhi: The Adani group will manufacture microchips for its own businesses ranging from ports to power and mining, as well as for global and domestic customers at its proposed fabrication plant in Maharashtra, multiple officials aware of the plans said. The ports-to-cement conglomerate has tied up with Israel’s Tower Semiconductor to build the foundry in Maharashtra's Raigad district.
The state government last week said that of the total ₹83,947 crore investment, ₹58,763 crore will be infused in the first phase and the balance in the second phase. The project will have a total capacity of 40,000 wafer starts per month (WSPM) in the first phase, which will be doubled later. “Adani will work as a contract manufacturer, like a foundry service, catering to global clients.
Tower has technology in optical and analog mixed-signal chips, and they also have captive consumption from contracts with some of the chip manufacturers, which can be done from the India fab with Adani," the person said. This will diversify Adani's portfolio and give Tower an entry to the India market where it can cater to local demand, he said, adding the proposal was yet to get government approval. Several global companies such as Apple, Nvidia and Qualcomm design chips and get them manufactured by another company, in a so-called fabless model, and Adani hopes to tap this market with the new chip plant.
Adani's chip business, to be led by a group company operating in allied sectors such as data centres, is expected to become one of its largest, the person cited above said. Serving in-house demand from Adani companies also gives Tower a ready commercial base, the second person said. “Adani-Tower would specifically
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