Adani Group Puts $10B Semiconductor Deal With Israel's Tower on Hold

Indian billionaire Gautam Adani’s group has paused talks with Israel’s Tower Semiconductor for a $10 billion chip-making project, Reuters reported, according to media reports.

Although Maharashtra approved the project in September—with plans to produce 80,000 wafers per month and create 5,000 jobs—Adani Group found that the deal didn’t make enough strategic or commercial sense at this stage.

One source said the group was uncertain about the level of demand in India and decided to wait for now, though talks could restart later. Another person said Adani wasn’t satisfied with Tower’s financial commitment to the partnership.

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Tower was expected to bring in technical expertise, but Adani reportedly wanted the company to invest more money in the venture.

Neither Adani nor Tower responded to media questions. Tower mainly makes analog and mixed-signal chips used in cars and other devices.

A second source said Adani Group wasn’t happy with how much money Tower was ready to invest in the partnership, though exact details weren’t shared.

Israeli chipmaker Tower makes analog and mixed-signal chips mostly used in cars.

Adani’s decision to pause the project could be a setback for Prime Minister Modi’s “Make in India” push to grow the country’s semiconductor industry.

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