Tata Electronics and Dutch semiconductor equipment maker ASML signed an agreement on Saturday to build India’s first front-end semiconductor fabrication plant in the western state of Gujarat, as the country pushes to strengthen its domestic chip industry, News.Az reports, citing Reuters.

According to a joint statement, ASML’s technology will support Tata Electronics’ planned 300-millimetre semiconductor fabrication facility in Gujarat.

“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.

Tata Electronics is developing the plant in Dholera, Gujarat, with an investment of $11 billion. The facility is intended to manufacture chips for a range of applications, including automotive technology, mobile devices, and artificial intelligence, the statement added.

India’s Ministry of External Affairs said the agreement was signed in the presence of Indian Prime Minister Narendra Modi and Dutch Prime Minister Rob Jetten. The two leaders also met with chief executives from leading Dutch companies in sectors such as energy, ports, and technology.

Modi encouraged Dutch firms to invest in areas including semiconductors, renewable energy, digital technologies, and healthcare. Both leaders also called for the early implementation of a free trade agreement between India and the European Union.

India has pledged billions of dollars in subsidies to attract semiconductor fabrication projects and related manufacturing facilities. Eight projects are currently underway, including a separate $14 billion Tata Electronics semiconductor facility in Gujarat.

At the same time, Dutch semiconductor companies are seeking new markets and broader geographical diversification amid export controls and trade restrictions tied to the US-China technology rivalry.

News.Az 

By Nijat Babayev