ASML and Tata Electronics have signed a memorandum of understanding to deploy ASML's lithography equipment at India's first front-end semiconductor fab, a 300mm facility under construction in Dholera, Gujarat.
The deal was signed during Indian Prime Minister Narendra Modi's visit to the Netherlands, with Dutch Prime Minister Rob Jetten also present, and covers lithography tools, talent development, and supply chain support for a fab backed by $11 billion in total investment.
Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) is licensing the process technology for the Dholera fab, covering 28nm, 40nm, 55nm, 90nm, and 110nm nodes, according to the ASML press release. PSMC is also providing design and construction assistance under a definitive agreement finalized with Tata Electronics in 2024.
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At full capacity, the plant is designed to produce 50,000 wafers per month for a chip portfolio that covers power management ICs, display drivers, microcontrollers, and high-performance computing logic for automotive, mobile, AI, and communications applications, according to the companies' joint statement.
"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," Randhir Thakur, CEO and MD of Tata Electronics, said in the press release.
It was reported last month that civil construction at the Dholera site has reached roughly 50% completion. The project required a major redesign late last year after soil testing found the ground too soft and saline for the original structural plan, though it was said at the time that the changes wouldn’t delay the project’s overall timeline, and trial production is still targeted for later this year.
India's government is covering 50% of the eligible project costs through the India Semiconductor Mission, according to a fiscal support agreement signed in March last year between Tata Electronics and the Indian government's ISM.
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The Gujarat state government provides additional incentives, including subsidized land in the Dholera Special Investment Region, reduced power tariffs, and stamp duty exemptions. The Dholera site was formally designated a Special Economic Zone in April 2026.
This deal is the latest in a series of partnerships that Tata has assembled for the Dholera project. India joined the U.S.-led Pax Silica initiative back in February, a supply chain alliance spanning semiconductors, AI infrastructure, and critical minerals.
India currently has no front-end wafer fab capacity. While Micron does operate an assembly and test facility in Sanand, Gujarat, and several other packaging and testing projects are in development, the Dholera fab is the country's only commercial foundry project. ASML CEO Christophe Fouquet described India's semiconductor sector as presenting "many compelling opportunities" in the joint statement, adding that the company looks forward to contributing "technological expertise" and helping "nurture talent in India."
Luke James is a freelance writer and journalist. Although his background is in legal, he has a personal interest in all things tech, especially hardware and microelectronics, and anything regulatory.
