Tata Electronics and ASML partner on India’s first semiconductor fab

TATA Electronics and ASML on Saturday signed an agreement to build India’s first front-end semiconductor fabrication plant in the state of Gujarat, as the country accelerates efforts to develop a domestic chip industry.

The Dutch chipmaking equipment maker’s technology will support Tata Electronics’ planned 300-millimetre semiconductor fabrication plant in Gujarat, the companies said in a joint statement.

“India’s rapidly expanding semiconductor sector represents many compelling opportunities, and we are committed to establishing long-term partnerships in the region,” ASML CEO Christophe Fouquet said.

Tata Electronics is developing the plant in Dholera, Gujarat, with an investment of US$11 billion, aimed at producing chips for applications ranging from automotive and mobile devices to AI, the statement said.

The deal was signed in the presence of Indian Prime Minister Narendra Modi and Dutch Prime Minister Rob Jetten, India’s Ministry of External Affairs said, adding the two leaders also met chief executives from leading Dutch companies across sectors including energy, ports and technology.

Modi urged Dutch companies to invest in areas such as semiconductors, renewable energy, digital technologies and healthcare, while both leaders called for early implementation of an India-European Union free trade agreement.

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India has pledged billions of dollars in subsidies to attract semiconductor fabrication plants and related manufacturing, with eight projects underway including a $14 billion Tata Electronics facility in Gujarat.

Meanwhile, Dutch semiconductor firms are seeking new markets and geographical diversification amid export controls and trade restrictions linked to U.S.-China technology rivalry. REUTERS