India’s ‘grand alliance’ in the semiconductor world! Tata and Dutch giant ASML come together, advanced chips will be made in the country

Electronics manufacturing company Tata Electronics and Dutch semiconductor equipment major ASML have joined hands to make chip manufacturing possible in India. This agreement was announced during Prime Minister Narendra Modi’s visit to Netherlands. ASML is known for its monopoly in a range of lithography equipment, which is extremely important for the production of advanced and small-sized semiconductors. Through this partnership, ASML will assist in setting up and successful operation of Tata Electronics’ upcoming 300 mm (12 inch) semiconductor fab (factory) at Dholera, Gujarat, the statement said. This cooperation is an important step in the context of growing strategic cooperation between India and the Netherlands in the field of critical technologies like semiconductor technology.

Tata will invest Rs 91 thousand crores

Tata Electronics is setting up India’s first semiconductor wafer fabrication plant, in which an investment of Rs 91,000 crore will be made. The statement further said that the main objective of the collaboration between Tata Electronics and ASML will be to implement the complete set of ASML’s advanced lithography equipment and solutions for the Dholera Fab. The use of ASML’s industry-leading technologies is expected to ensure uninterrupted operations in India’s first commercial 300 mm semiconductor fab. The partnership will also focus on accelerating the training of local talent, promoting lithography-focused skill development, as well as ensuring supply chain strength.

ASML will help Tata

Given the importance of lithography in chip manufacturing, both the companies will develop the necessary infrastructure for R&D, which is extremely important for the long-term success of this first fab to be set up in India. Randhir Thakur, CEO and MD, Tata Electronics, said that ASML’s deep expertise in end-to-end lithography solutions will ensure that our fab at Dholera can be fully operational on time. “It will also create a strong and reliable supply chain for our global customers, foster innovation and develop local talent.”

MOU signed

Christophe Fouke, President and CEO of ASML, said that India’s rapidly expanding semiconductor sector presents many attractive opportunities, and we are committed to establishing long-term partnerships in this sector. He said that the signing of this Memorandum of Understanding (MoU) today is an important milestone, and we look forward to working closely with Tata Electronics and its wider ecosystem. He said that we believe that Tata Electronics is in a strong position to meet its goals of expanding semiconductor capabilities.

Tata’s target

Tata Electronics’ Dholera unit aims to manufacture semiconductors for various uses in automotive, mobile devices, Artificial Intelligence (AI) and other key sectors, to serve customers across the world. Tata Electronics has forged strategic partnerships with key global customers and ecosystem companies, starting with PSMC (Powerchip Semiconductor Manufacturing Corporation, Taiwan). This helped the company access a larger portfolio of technologies including 28nm, 40nm, 55nm, 90nm and 110nm.

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