ASML to partner with India’s Tata Electronics

NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities.The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi.ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print intricate patterns of transistors on silicon wafers to make cutting-edge semiconductors. Last month, it raised its sales guidance for the year as chipmakers ramp up production to meet demand from big tech companies expanding their artificial intelligence (AI) computing capacity.“India’s rapidly expanding semiconductor sector represents many compelling opportunities,” ASML CEO Christophe Fouquet said in the statement. “We are committed to establishing long-term partnerships in the region,” he added. The move opens up a new market for ASML, which counts South Korea, Taiwan and China as its biggest markets. For India, the partnership ties in with the government’s aim to put the country on a par with major chip-making producers by 2032.Tata Electronics is investing US$11 billion to build India’s first 300mm commercial fab in Dholera, Gujarat. The facility is to make semiconductors for applications across automotive, mobile devices and AI segments, the statement said.ASML and Tata Electronics would also cooperate to train talent for India’s semiconductor industry, develop a supply chain as well as research and development infrastructure to support the fabrication plant, the companies said.Modi is on five-nation tour across the United Arab Emirates and Europe. His visit to the Netherlands comes after the EU and India entered into a free-trade agreement in January that is expected to double goods exports from the bloc to the South Asian nation by 2032.Modi headed to Sweden yesterday, where he was to address a European business leaders’ forum alongside European Commission President Ursula von der Leyen, before heading to Norway today for an India-Nordic Summit.Modi’s final leg would be Italy on Tuesday next week, where Modi is to meet Italian Prime Minister Giorgia Meloni — with whom he has a close friendship.