Tata Electronics and ASML Partner for $11 Billion India Chip Plant

Tata Electronics and ASML Holding signed a Memorandum of Understanding on May 16, 2026, in The Hague to establish India's first commercial 300 mm front-end semiconductor fabrication plant in Dholera, Gujarat. The agreement, signed in the presence of Indian Prime Minister Narendra Modi and Dutch Prime Minister Rob Jetten, involves a planned investment of approximately $11 billion. ASML will provide advanced lithography tools and solutions to enable the mass production of microchips for artificial intelligence, automotive, and mobile applications.

The partnership extends beyond equipment to include the development of R&D infrastructure, domestic talent cultivation, and supply chain resilience. This initiative aligns with India's goal to match major global chip-making producers by 2032 and its broader strategy for technological independence. To further support the facility, Tata Electronics has also partnered with Taiwan's Powerchip Semiconductor Manufacturing Corporation for technology transfers across mature process nodes.

The deal occurred during a diplomatic visit where Narendra Modi and Rob Jetten elevated bilateral relations to a strategic partnership. Discussions included an action plan for defense and security, as well as cooperation in space travel, maritime systems, and fintech. During the visit, the Leiden University Library also restituted 11th-century Chola Copper Plates to the Government of India.