Adani Group pauses talks with Israel's Tower Semiconductor for chip project
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New Delhi: The Adani Group has halted its discussions with Israel’s Tower Semiconductor for setting up a $10 billion chip manufacturing venture in India.
The discussions have been paused because the project is found to be currently lacking strategic and commercial viability, The Times of India reported citing news agency Reuters.
The project, aimed to produce 80,000 wafers per month alongside creating about 5,000 jobs, was initially proposed in Maharashtra in September as part of PM Modi’s push to turn India into a global chipmaking hub.
It is reported citing sources that the discussions have been halted after internal assessment pointed to concerns over uncertain domestic demand.
A source reportedly said: ‘It was more of a strategic decision. Adani evaluated it and decided, let's wait’ suggesting that the talks may well resume later.
It is also reported citing another source that Adani Group was dissatisfied with the financial investment that the Tower was willing commit in the project.
Neither Adani nor Tower responded to Reuters’ queries.