The $10 billion chipmaking project went on hold after Adani paused talks with Israel’s Tower Semiconductor, which could have created 5,000 jobs.
Two reliable sources told Reuters that Adani Group is doing an internal evaluation and analyzing the demand in India.
In September last year, the Maharashtra government approved Adani Group and Tower’s establishment of a chip manufacturing unit that could produce 80,000 wafers per month in the initial phase.
There could be a few other major reasons behind the pause in talks such as Trump’s tariffs and Tata Group’s $11 billion chipmaking and chip testing under development plant.
Recently, U.S. President Donald Trump imposed 25% semiconductor tariffs on India, which will highly impact India’s semiconductor exports as the U.S. and China are the biggest markets for global semiconductor end-demand.
The U.S. and China together accounting 54% market share whereas India’s share will be 6.5% this financial year.
The other major reason could be Tata Group’s under-development chipmaking and chip testing plant in India which will also capture the market share and will give tough competition to Adani’s plant that’s why Adani Group is reanalyzing demand in India.