ASML Joins India’s Semiconductor Push Through Tata Partnership

India aims to move beyond software and build long-term industrial chip capacity

ASML and Tata Electronics have signed an agreement aimed at supporting the development of one of India’s first major semiconductor fabrication facilities. The announcement was made during Indian Prime Minister Narendra Modi’s visit to the Netherlands and forms part of a broader push by India to expand its domestic semiconductor industry.

Under the partnership, ASML will help provide technological expertise and support the development of semiconductor talent and training in India. Tata Electronics is currently developing a chip fabrication facility in Dholera, Gujarat, focused on producing 300-millimeter chips for sectors including automotive technology, mobile devices and AI-related applications.

While the agreement itself remains relatively broad, the strategic direction behind it is becoming increasingly clear.

India is no longer positioning itself solely as a software and services economy. It is attempting to build the industrial infrastructure required to become a larger player in semiconductor manufacturing itself.

Earlier this year, Modi stated that India aims to establish at least ten advanced semiconductor facilities across the country. That ambition reflects a wider shift taking place across Asia’s technology landscape, where semiconductors are increasingly viewed as strategic infrastructure tied to economic resilience, geopolitical influence and technological sovereignty.

For decades, India’s global technology role was primarily associated with:

• software development
• outsourcing
• engineering services
• digital support ecosystems

Semiconductor manufacturing, however, requires a very different type of capability:

• industrial precision
• supply chain coordination
• advanced manufacturing ecosystems
• long-term infrastructure investment

That is what makes the ASML partnership particularly significant.

The Dutch company is not merely supplying machines. It is effectively helping transfer production knowledge, technical standards and access to one of the world’s most advanced semiconductor ecosystems.

The move also reflects a broader restructuring of global supply chains. As geopolitical tensions continue to reshape the semiconductor industry, countries increasingly want to diversify manufacturing capacity beyond traditional production centers.

India appears determined to position itself within that shift.

The semiconductor race is no longer only about who designs the most advanced chips. Increasingly, it is about which countries can build the industrial ecosystems required to produce them.

Illustration credit:
Illustration by Altair Media Asia (AI-generated)

Caption:
Representatives of Tata Electronics and ASML sign a semiconductor partnership agreement during Indian Prime Minister Narendra Modi’s visit to the Netherlands, reflecting India’s growing ambitions to build domestic chip manufacturing capacity.