Israel Tower Semiconductor (TSEM.US) and India's Adani Group plan to invest 839.47 billion Indian rupees ($10 billion) to build a semiconductor manufacturing plant near Mumbai, Maharashtra, India.

According to Devendra Fadnavis, Deputy Chief Minister of Maharashtra, in an article on Platform X, the first phase of investment will reach 587.63 billion Indian rupees (approximately $7 billion), while the second phase of investment will reach 251.84 billion rupees (approximately $3 billion).

The plant will be engaged in the manufacture of analog and mixed-signal semiconductors.

The plant's first phase capacity will be 0.04 million wafers, and the second phase capacity will be 0.08 million wafers.

Fadnavis pointed out that the plan is expected to create more than 5000 jobs.

According to reports, the project will be completed within three to five years. The chips produced by the factory will be used in drones, cars, smartphones, and other mobile solutions.

Adani is following in the footsteps of Tata Group to enter the emerging semiconductor industry in India. Tata has partnered with Powerchip to establish a $11 billion chip manufacturing plant in Gujarat, India. The factory will use 40nm or older technology to produce 0.05 million pieces of older generation chips, which are still used in consumer electronics, autos, defense systems, and aircraft.

The Indian government has received a $21 billion proposal to increase chip production capacity, and has already announced investments of over $15 billion in chip manufacturing facilities this year. The Asian country has also established a $10 billion fund to attract chip manufacturers to build factories in the country. According to reports, Micron Technology (MU.US) has already begun construction of a semiconductor factory in Gujarat, with a total investment of $2.75 billion.