Tata Electronics and Dutch technology firm ASML signed an agreement on May 16 to build India’s first front-end semiconductor fabrication plant in Dholera, Gujarat, during Indian Prime Minister Narendra Modi’s official visit to the Netherlands [1, 2, 3]. Tata Electronics plans to invest approximately $11 billion to develop the facility, which will produce 300mm wafers for chips serving automotive, mobile devices, artificial intelligence, and other advanced sectors [1, 2, 4, 3].
ASML will supply its advanced lithography machines and technology to enable semiconductor manufacturing at the plant. Christophe Fouquet, ASML CEO, said, “India’s rapidly expanding semiconductor sector represents many compelling opportunities, and we are committed to establishing long-term partnerships in the region” [1, 2, 3].
The deal aligns with wider efforts to deepen India-Netherlands economic relations and promote an India-EU free trade agreement [1, 3]. It also supports India’s push to build a domestic semiconductor manufacturing capability to reduce dependence on imports [4]. India has pledged billions of dollars in subsidies to attract chip fabrication projects [1].
During his visit, Modi discussed defense, security, space, and maritime cooperation with Dutch Prime Minister Rob Jetten. Modi said, “My conversations with Prime Minister Rob Jetten were extensive and covered a wide range of topics. One of them was defense and security. I spoke about the possibility of drawing up an action plan for the defense industry as quickly as possible. We can also collaborate in sectors such as space travel, maritime systems, and maritime security” [2]. Modi also addressed the Indian diaspora and witnessed the return of historical Chola copper plates from Leiden University to India [2, 3].
The agreement marks the first major step in building high-end semiconductor manufacturing infrastructure in India and sets the foundation for further development in the sector. The project is expected to proceed with the next phase of detailed planning and construction following the deal signing.
