Gandhinagar: Tata Electronics and Dutch semiconductor equipment maker ASML have signed an agreement to develop India’s first front-end semiconductor fabrication facility in Gujarat, marking a major step in the country’s efforts to strengthen domestic chip manufacturing.
Under the agreement, ASML will provide technology support for Tata Electronics’ planned 300-millimetre semiconductor fabrication plant at Dholera in Gujarat. The facility is being developed with an investment of $11 billion and is expected to manufacture chips for sectors including automotive, mobile devices and artificial intelligence.
“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.
The agreement was signed in the presence of Narendra Modi and Dutch Prime Minister Rob Jetten, according to India’s Ministry of External Affairs. The two leaders also interacted with executives from Dutch companies operating in sectors such as energy, ports and technology.
During the discussions, Modi invited Dutch companies to explore investments in semiconductors, renewable energy, healthcare and digital technologies. Both sides also emphasised the need for early implementation of the India-European Union free trade agreement.
India has been expanding incentives for semiconductor manufacturing as it looks to reduce dependence on imports and build a domestic electronics supply chain. Several semiconductor projects are currently under development across the country, including another Tata Electronics semiconductor facility in Gujarat valued at around $14 billion.
The agreement also comes at a time when Dutch semiconductor companies are looking to diversify operations and expand into new markets amid export restrictions and ongoing technology tensions between the United States and China.
BI Bureau
