Adani Group Halts $10 Billion Chip Project Talks with Tower Semiconductor

Adani Group has paused its $10 billion semiconductor manufacturing project with Israel's Tower Semiconductor, citing concerns about the venture's strategic and commercial viability. The decision follows an internal review that raised doubts about sufficient demand for chips in the Indian market, despite the project's approval by Maharashtra state and its alignment with India's ambition to become a semiconductor hub. Adani was also reportedly dissatisfied with the level of financial commitment from Tower, which was primarily contributing technological expertise, and wanted its partner to invest more financially. Sources indicate that while the project is on hold, talks could potentially resume in the future. This pause marks a setback for India's 'Make in India' initiative and Prime Minister Modi's push to develop a domestic semiconductor industry.