India’s Tata Electronics has signed a major semiconductor agreement with Dutch technology giant ASML, marking a significant step forward in India’s ambition to build a stronger chipmaking industry.
The deal was announced on Saturday during Prime Minister Narendra Modi’s visit to the Netherlands as part of his broader European tour. It will support the development of Tata’s upcoming semiconductor facility in Dholera, Gujarat, in western India — the prime minister’s home state.
ASML, Europe’s most valuable technology company, is best known for manufacturing advanced lithography systems used in the production of high-end microchips. These machines are essential in making chips that power a wide range of modern products, including smartphones, computers, cars, and artificial intelligence systems.
Under the agreement, ASML will help Tata Electronics establish and scale up production at the plant by supplying advanced chipmaking equipment and technical support. Tata has said it plans to invest $11 billion in the facility, which is expected to produce chips for artificial intelligence, the automotive sector, and other key industries.
The partnership comes at a time when India is pushing hard to reduce its dependence on imported semiconductors and attract more foreign investment into advanced manufacturing. For New Delhi, the deal represents more than just a business agreement. It is part of a wider strategy to build a domestic technology base, create jobs, and strengthen its position in the global supply chain.
ASML chief executive Christophe Fouquet said the company sees strong potential in India’s rapidly expanding semiconductor market and expressed confidence in long-term cooperation with the country.
“We see many compelling opportunities in India’s growing semiconductor industry,” Fouquet said, adding that the company is committed to building durable partnerships in the region.
The agreement also reflects the growing economic relationship between India and the Netherlands. Both countries have been seeking deeper cooperation in trade, innovation, and high-tech industries, while the European Union has increasingly viewed India — now the world’s most populous country and one of its fastest-growing major economies — as a crucial market for the future.
During his visit, Modi held talks with Dutch Prime Minister Rob Jetten and also met King Willem-Alexander. According to Modi, the discussions covered a broad range of issues, including defence, security, space cooperation, maritime systems, and maritime security.
Writing on X, Modi said the talks with Jetten were extensive and touched on how the two countries could move quickly to develop an action plan for cooperation in the defence sector.
He also noted that India and the Netherlands could expand collaboration in other strategic areas such as space technology and maritime security, highlighting the growing scope of the bilateral relationship beyond trade.
Alongside the diplomatic meetings, Modi addressed members of the Indian diaspora during the visit. He is also expected to inspect centuries-old Chola copper plates being returned to India by Leiden University, a gesture that underscores the cultural dimension of the trip as well.
Officials from both sides are additionally discussing a more flexible visa arrangement for Indian students and workers in the Netherlands, which could further boost educational and professional exchanges between the two countries.
After wrapping up his visit to the Netherlands, Modi is scheduled to travel to Sweden for talks with Prime Minister Ulf Kristersson. Those discussions are expected to focus on trade, innovation, and green technology cooperation.
This marks Modi’s second visit to Sweden, following his attendance at the first India-Nordic summit in 2018, and is part of India’s broader effort to deepen partnerships with Europe on technology, investment, and strategic industries.
The Tata-ASML deal is being seen as a landmark move that could strengthen India’s semiconductor ambitions while giving the country a stronger foothold in one of the most critical sectors of the global economy.
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