Tata Electronics and ASML have signed a strategic partnership to support India's semiconductor manufacturing ambitions, marking a key step in the country's attempt to build a domestic chip ecosystem.

The agreement, signed on Saturday during Prime Minister Narendra Modi's visit to the Netherlands, will see ASML supply advanced lithography tools and solutions for Tata Electronics' upcoming 300 mm semiconductor fabrication plant in Dholera, Gujarat - the country's first commercial fab of its kind.

The partnership also deepens strategic cooperation between India and the Netherlands in critical technologies such as semiconductors.

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Why ASML matters

ASML, a Dutch multinational corporation, is one of the world's most important semiconductor equipment manufacturers. It supplies high-precision lithography systems that chipmakers use to manufacture semiconductors. These machines are considered critical to producing advanced chips used in smartphones, artificial intelligence systems, automobiles, and industrial electronics.

By partnering with ASML, Tata Electronics gains access to one of the most critical parts of the global semiconductor supply chain.

ASML, in a statement, said the collaboration would focus on deploying its "holistic suite of advanced lithography tools and solutions" at the Dholera plant to support operational ramp-up and manufacturing.

The fab, being developed with a planned investment of $11 billion, will manufacture semiconductors for sectors including automotive, mobile devices, and AI.

Randhir Thakur, CEO & MD of Tata Electronics, said the partnership would help Tata Electronics scale manufacturing and strengthen India’s semiconductor ecosystem. "We are excited to partner with ASML, a company known for its innovation and leadership in lithography," Thakur said.

"ASML's deep expertise in holistic lithography solutions will ensure the timely ramp of our fab in Dholera, create a resilient and trusted supply chain for our global customers, drive innovation, and develop talent locally."

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What Tata is building in Gujarat

Tata Electronics is developing India's first 300 mm commercial fab in Dholera. With a planned investment of $11 billion, the facility will manufacture semiconductors for a variety of applications across automotive, mobile devices, artificial intelligence (AI), and other key segments, to serve customers globally.

Tata Electronics has strategically partnered with key global customers and ecosystem companies, starting with PSMC (Powerchip Semiconductor Manufacturing Corporation, Taiwan), thereby gaining access to a broad technology portfolio including 28nm, 40nm, 55nm, 90nm, and 110nm.

ASML President and CEO Christophe Fouquet described India's semiconductor sector as a major growth opportunity. "India's rapidly expanding semiconductor sector represents many compelling opportunities, and we are committed to establishing long-term partnerships in the region," Fouquet said. "We believe Tata Electronics is strongly positioned to realise its ambitions in expanding semiconductor capabilities."

The talent and supply-chain challenge

Beyond manufacturing, the partnership will also focus on developing India's domestic semiconductor talent pipeline. ASML said it would cooperate on training, supply chain development, and research initiatives to support long-term operations at the Gujarat fab.

The availability of skilled workers remains one of the biggest challenges for India's semiconductor ambitions as the country attempts to reduce dependence on imported chips and position itself as an alternative manufacturing hub in the global supply chain.