NEW DELHI (Diya TV) — India took a major step toward building its semiconductor industry as Tata Electronics and ASML signed a memorandum of understanding to support a new chip fabrication plant in Dholera, Gujarat.
Indian Prime Minister Narendra Modi and Netherlands Prime Minister Rob Jetten witnessed the signing ceremony in New Delhi. The agreement marks a significant milestone for India’s semiconductor manufacturing ambitions and strengthens economic ties between India and the Netherlands.
The partnership will help establish and expand a 300 mm semiconductor fabrication facility in Dholera. The plant will become India’s first commercial front-end semiconductor fab. Industry experts view the project as a key step in reducing India’s dependence on imported chips and building a stronger global semiconductor supply chain.
Tata Group subsidiary Tata Electronics plans to invest $11 billion in the Dholera semiconductor plant. The company aims to manufacture chips for automotive systems, smartphones, artificial intelligence applications, and other advanced technologies.
The fab will target global markets as demand for semiconductors continues to rise worldwide. Governments and technology companies have increased investments in chip manufacturing after recent global supply shortages disrupted industries from automobiles to consumer electronics.
ASML, headquartered in the Netherlands, is one of the world’s leading suppliers of lithography systems used in semiconductor production. The company will provide advanced lithography equipment and technical solutions for the Gujarat facility.
The Tata-ASML agreement goes beyond equipment supply. The partnership also includes technology deployment, workforce training, research collaboration, and supply chain development.
Both companies plan to support local talent training and lithography skill development in India. These efforts aim to create a skilled workforce capable of operating advanced semiconductor manufacturing facilities. The agreement also focuses on research and development infrastructure. Industry analysts say strong research capabilities and skilled engineers are critical for achieving high chip production yields and long-term success in semiconductor manufacturing.
Construction work at the Dholera plant is already moving quickly. Tata Electronics has also partnered with Taiwan-based Powerchip Semiconductor Manufacturing Corp., also known as PSMC, to access semiconductor process technologies across multiple nodes, including 28nm, 40nm, 55nm, 90nm, and 110nm technologies. These manufacturing nodes support a wide range of industries, including automotive electronics, industrial equipment, and mobile devices.
India has increased efforts to become a major semiconductor manufacturing hub in recent years. The government introduced incentives and policy reforms to attract global chipmakers and technology investors. The Tata-ASML partnership aligns with India’s broader semiconductor strategy and its goal of strengthening domestic electronics manufacturing. Officials believe the project can help India become an important player in the global semiconductor ecosystem.
The agreement also supports efforts to create a more resilient semiconductor supply chain. Global chip shortages during the COVID-19 pandemic highlighted the risks of relying heavily on a small number of manufacturing locations. India and the Netherlands also agreed to elevate cooperation in semiconductor technology to a “Strategic Partnership” level. The expanded partnership includes collaboration in green hydrogen, technology innovation, talent mobility, and research and development.
During the event, Modi emphasized the growing relationship between India and Europe. He pointed to the proposed India-European Union Free Trade Agreement and India’s economic reforms as important drivers for foreign investment.
The Indian government has introduced measures aimed at reducing compliance requirements, opening sectors to investment, and encouraging manufacturing growth.“The strengthening strategic partnership between India and Europe is giving new momentum to our business relations,” Modi said. “I am fully confident that you will now increase your scope, investment, and ambition in India.”
Industry leaders say the Tata-ASML partnership could encourage more global semiconductor companies to invest in India. The project may also create thousands of direct and indirect jobs while boosting India’s position in advanced technology manufacturing.
