Adani Group Pauses Talks With Israel's Tower For $10 Billion Chip Project: Report

New Delhi: The Adani group has paused discussions with Israel's Tower Semiconductor for a $10 billion chip project. The conglomerate, headed by billionaire Gautam Adani paused the talks after it did not make strategic and commercial sense for the group, reported Reuters.

Back in September, Maharashtra had announced approval for Adani and Tower to set up a facility which would produce 80,000 wafers per month and create 5,000 jobs.

"It was more of a strategic decision. Adani evaluated it and decided, let's wait," said a source told Reuters, adding there is a possibility talks can resume at a later date.

Earlier, the Adani Group had previously stated that the project was being evaluated, but the talks with Tower have been now been put on hold after the group’s internal evaluation found there was still uncertainty about how much demand – especially in India – the business can generate, said the first source with direct knowledge of the matter.

Sources said that Adani group’s assessment about the sector ascertained that chipmaking, then packaging it for end use and then selling it to potential customers, may not generate as much demand locally, which happens in bigger manufacturing hubs like China.

The Adani group did not respond to queries, said the Reuters report.

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