Adani in Search of Display Fab Partner After Ending Chip Ties with Tower

Adani Group, the port-to-power conglomerate, is reportedly seeking a technology partner to set up an LCD display fabrication plant. The move comes months after its partnership with Israel’s Tower Semiconductor for a chip facility collapsed.

According to the Economic Times (ET), the Gautam Adani-led group is in talks with several companies, including Japanese firms Sharp Corporation and Panasonic, for the joint venture. The two companies mentioned in the report are likely the top contenders.

While the publication, citing sources, did not provide further details, it speculated that land originally assigned for the chip manufacturing project could be repurposed for the new plan.

Last year, Adani Group announced plans to establish a $10 billion chip manufacturing facility at Taloja on the outskirts of Mumbai with Tower Semiconductor. The project, according to then Deputy Chief Minister and current CM Devendra Fadnavis, was expected to create more than 5,000 direct jobs.

Later reports indicated that Adani Group paused discussions over concerns regarding the project's commercial viability and strategic alignment.

Sources told ET that the group has now shifted focus to an LCD display fab. Discussions with companies like Sharp and Panasonic are reportedly gaining momentum, particularly after Prime Minister Narendra Modi’s visit to Japan earlier this year.

In January 2024, Adani signed a ₹50,000-crore deal with the Maharashtra government to establish a 1 GW hyperscale data centre. The report notes that the land allocated for the project could be used for multiple purposes. While there is an agreement with Adani to develop data centres and associated ecosystems in Navi Mumbai, the Maharashtra government has issued a 'comfort letter.' This allows the land to be used for data centres or semiconductor-related projects, provided a suitable partner is brought in and the investment is made.

The Ministry of Electronics and Information Technology (MeitY) has stated that display fabs will be a key focus under the proposed Semicon 2.0 programme to boost domestic production and reduce reliance on imports. Proposals from companies such as Vedanta and Rajesh Exports have been submitted but are still awaiting approval for subsidies.