New Delhi: Prime Minister of India Narendra Modi and Netherlands Prime Minister Rob Jetten witnessed the signing of a Memorandum of Understanding (MoU) between Tata Electronics and ASML. The agreement supports the establishment and ramp-up of a 300 mm semiconductor fabrication plant on Dholera, Gujarat the first commercial front-end semiconductor fab in India. ASML based the Netherlands is a global leader in lithography equipment and will supply advanced lithography tools and solutions to the facility. The partnership focuses on technology deployment, local talent training, lithography skill development, supply chain resilience and Research and Development infrastructure. These elements are critical for achieving high yield and long-term operational success in chip manufacturing.
Tata Electronics, a Tata Group subsidiary, is investing US $11 billion in the Dholera fab. The plant will produce semiconductors for automotive, mobile, AI and other applications, targeting global markets. Tata Electronics has existing partnerships, including with Taiwan’s PSMC, providing access to process technologies at 28nm, 40nm, 55nm, 90nm and 110nm nodes. Construction is progressing rapidly. The partnership has a role in building a resilient supply chain, driving innovation, and developing local talent, that fosters long-term collaboration and opens up new opportunities in India’s semiconductor sector.
Government keen to support semiconductor manufacturing
The signing of the MoU also strengthens ties between India and Netherlands. The two countries agreed to elevate their partnership in semiconductor technology to ‘Strategic Partnership’ status, alongside initiatives in green hydrogen, technology collaboration, talent mobility and Research and Development. PM Modi Noted the India-EU Free Trade Agreement and India’s economic reforms, including sector openings, reduced compliances and incentives for manufacturing.
Prime Minister Narendra Modi said, “The strengthening strategic partnership between India and Europe is giving new momentum to our business relations. It is now in your hands to move forward rapidly in this direction. I am fully confident that you will now increase your scope, investment, and ambition in India. And along with you, the entire European innovation ecosystem will also come to India.”