India’s semiconductor ambitions received a major boost on Saturday as Tata Electronics and ASML announced a strategic partnership to support chip manufacturing in India.
The agreement was unveiled during Prime Minister Narendra Modi’s visit to the Netherlands and marks a significant step in India’s efforts to establish a domestic semiconductor ecosystem.
ASML, one of the world’s most important semiconductor equipment makers, is known for its near-monopoly in advanced lithography systems — a critical technology used in manufacturing cutting-edge semiconductors.
Under the agreement, ASML will support the establishment and ramp-up of Tata Electronics’ upcoming 300 mm (12-inch) semiconductor fabrication plant in Dholera, Gujarat.
“This collaboration is an important step in the context of the intensifying strategic collaboration between India and the Netherlands in the field of critical technologies, such as semiconductor technology,” the companies said in a joint statement.
Tata Electronics is investing nearly Rs 91,000 crore in the Dholera semiconductor facility, which is set to become India’s first commercial semiconductor wafer fabrication plant.
ASML To Supply Advanced Lithography Technology
The partnership will focus on deploying ASML’s advanced lithography tools and semiconductor manufacturing solutions at the Dholera facility.
Lithography systems are considered the backbone of semiconductor manufacturing because they enable the printing of microscopic circuit patterns onto silicon wafers. These machines are essential for producing advanced chips used in smartphones, AI systems, automobiles, high-performance computing and consumer electronics.
According to the statement, ASML’s technologies are expected to help ensure smooth operations and efficient scaling of India’s first commercial 300 mm semiconductor fabrication plant.
The collaboration will also include:
- Development of lithography-intensive skills in India
- Training of local semiconductor talent
- Strengthening supply chain resilience
- Building long-term research and development infrastructure
The companies said these initiatives are aimed at supporting the long-term success of India’s semiconductor manufacturing ambitions.
Tata Electronics Highlights Supply Chain And Innovation Goals
Randhir Thakur, CEO and Managing Director of Tata Electronics, said ASML’s expertise would play a crucial role in scaling up the Gujarat facility.
“ASML’s deep expertise in holistic lithography solutions will ensure the timely ramp of our Fab in Dholera, create a resilient and trusted supply chain for our global customers, drive innovation, and develop talent locally,” he said.
ASML Says India Offers Massive Semiconductor Opportunities
Christophe Fouquet said India’s rapidly growing semiconductor sector presents major opportunities for global technology firms.
“Signing this Memorandum of Understanding today marks an important milestone, and we look forward to close collaboration with Tata Electronics and its broader ecosystem,” Fouquet said.
“We believe Tata Electronics is strongly positioned to realize its ambitions in expanding semiconductor capabilities,” he added.
Dholera Fab To Produce Chips For AI, Automotive And Mobile Devices
The Dholera semiconductor plant is expected to manufacture chips for multiple industries, including:
- Automotive technology
- Mobile devices
- Artificial intelligence applications
- Consumer electronics
- Industrial systems
Tata Electronics has already partnered with Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan for technology support and access to semiconductor manufacturing processes.
The partnership provides Tata Electronics access to a broad portfolio of semiconductor technologies, including 28nm, 40nm, 55nm, 90nm and 110nm process nodes.
The announcement comes at a time when India is aggressively pushing to become a global semiconductor manufacturing hub amid increasing geopolitical focus on supply chain diversification and critical technologies.