India is poised to attract up to $30 billion in investments for its semiconductor sector over the next three to five years, aiming to bolster domestic manufacturing capabilities.

A significant joint venture between Israel's Tower Semiconductor and India's Adani Group will see an investment of approximately 839.47 billion rupees ($10 billion) to establish a semiconductor fabrication plant in Maharashtra.

The new semiconductor facility in Maharashtra will start with a production capacity of 40,000 wafers per month, with plans to double this to 80,000 in the second phase.

This project, located in Panvel, Raigad district, will involve an initial investment of Rs 58,763 crore, followed by an additional Rs 25,184 crore, creating around 15,000 jobs.

The semiconductor facility is expected to take three to five years to complete and will generate approximately 5,000 jobs.

In addition to the semiconductor project, Maharashtra's Chief Minister announced the approval of projects worth 1.17 trillion rupees, which are projected to create 29,000 jobs.

Earlier this year, India received semiconductor proposals totaling $21 billion, with over $15 billion earmarked for chipmaking plants, reflecting a strong push to enhance local manufacturing.

The Indian government has established a $10 billion fund to attract semiconductor manufacturers, which has already led to Micron Technology announcing a $2.75 billion facility in Gujarat.

Despite previous setbacks, including Foxconn's withdrawal from a major joint venture, the current initiatives signal a renewed commitment to developing India's semiconductor industry.

Advancements in semiconductor technologies are crucial for enhancing AI compute infrastructure, with India's market projected to reach $63 billion by 2026.

The chips produced at these facilities will be utilized in various applications, including drones, cars, smartphones, and other mobility solutions.

This initiative is part of India's broader strategy to reduce reliance on imports and strengthen its position in the global semiconductor supply chain amidst rising tech competition.