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Tata Electronics and ASML Partner to Boost India's Semiconductor Manufacturing Ambitions

In a significant milestone, Tata Electronics and Dutch semiconductor equipment giant ASML have signed a partnership agreement to support semiconductor manufacturing in India. The collaboration, announced during Prime Minister Narendra Modi's visit to the Netherlands, marks a major step in the country's chip-making ambitions.

According to a joint statement issued on Saturday, the partnership will support the establishment and ramp-up of Tata Electronics' upcoming 300 mm (12-inch) semiconductor wafer fabrication plant at Dholera in Gujarat. ASML, a global leader in advanced lithography systems, will deploy its advanced lithography tools and solutions for the Dholera facility.

The collaboration will focus on deploying ASML's holistic suite of advanced lithography tools and solutions for the Dholera Fab. The use of ASML's industry-leading technologies is expected to ensure seamless operations at India's first commercial 300 mm semiconductor Fab. Tata Electronics is setting up the semiconductor fabrication facility with an investment of Rs 91,000 crore, part of India's broader push to build a domestic semiconductor ecosystem and reduce dependence on imports.

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The partnership will also focus on accelerating training of local talent, developing lithography-intensive skills, strengthening supply chain resilience, and creating research and development infrastructure needed for the long-term success of India's first semiconductor fab. The Dholera semiconductor facility aims to manufacture chips for sectors including automotive, mobile devices, artificial intelligence (AI), and other high-growth segments for global customers.

CompanyProcess Nodes
Powerchip Semiconductor Manufacturing Corporation (PSMC)28nm, 40nm, 55nm, 90nm, 110nm
ASMLAdvanced lithography systems

Tata Electronics has also partnered with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC), gaining access to a broad portfolio of semiconductor technologies including 28nm, 40nm, 55nm, 90nm, and 110nm process nodes. ASML President and CEO Christophe Fouquet said India's rapidly growing semiconductor sector presents significant opportunities for long-term collaboration. Fouquet expressed his enthusiasm for the partnership and its potential to drive innovation and develop talent locally.

The partnership is expected to have a significant impact on India's semiconductor industry, and Tata Electronics CEO and MD Randhir Thakur echoed this sentiment. "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," Thakur said.

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Investor Takeaway

Investors should monitor the development of India's semiconductor manufacturing industry.

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