Tata and ASML partner on chip facility in Dholera

The agreement, announced on 16 May 2026 during Prime Minister Narendra Modi's visit to the Netherlands, commits ASML to supplying its lithography tools and software for the $11 billion Dholera facility, and extends well beyond equipment into talent development, supply chain resilience and shared R&D infrastructure.

What the deal covers

Under the MoU, ASML will deploy what the company calls its "holistic" suite of lithography systems and computational lithography solutions at Dholera — the tooling that patterns circuits onto silicon wafers and typically represents the single largest capital line item in any fab.

The two companies will also cooperate on three fronts the announcement singles out as critical to the fab's long-term viability:

• Talent — joint programmes to train local engineers in lithography-intensive skills and build a domestic expert pipeline
• Supply chain — proactive development of a resilient local and regional supplier base
• Research — R&D infrastructure intended to support the fab beyond its initial ramp

The Dholera fab

Tata Electronics is building India's first 300 mm (12-inch) commercial wafer fab at Dholera, with a planned total investment of US$11 billion. At full capacity the plant is designed to output roughly 50,000 wafers per month, covering power management ICs, display drivers, microcontrollers and high-performance computing logic for automotive, mobile, AI and communications customers.

Process technology is being licensed from Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), giving Tata access to 28nm, 40nm, 55nm, 90nm and 110nm nodes — mature and mid-range geometries rather than leading edge, but the workhorse nodes behind most automotive and industrial silicon. The Dholera site was formally designated a Special Economic Zone in April 2026, and Tata Electronics is targeting trial production in December 2026.

What the executives said

"We are excited to partner with ASML, a company known for its innovation and leadership in lithography, and for enabling semiconductor customers globally," said Dr. Randhir Thakur, CEO and Managing Director of Tata Electronics. "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."

Christophe Fouquet, President and CEO of ASML, framed the agreement as the start of a longer regional commitment. "India's rapidly expanding semiconductor sector represents many compelling opportunities, and we are committed to establishing long-term partnerships in the region," he said. "We believe Tata Electronics is strongly positioned to realize its ambitions in expanding semiconductor capabilities. We are pleased and honored to contribute our technological expertise and to help nurture talent in India."

Why it matters

Lithography is the chokepoint of semiconductor manufacturing, and ASML is effectively the only supplier at the high end. Securing a direct relationship with the Dutch firm — rather than buying second-hand or through intermediaries — removes one of the more significant execution risks facing a first-time fab operator, and signals that India's programme is being taken seriously by the industry's most constrained vendor.

The timing is also geopolitical. Export controls have tightened ASML's ability to ship advanced systems to China, and the company has been broadening its customer base across friendly jurisdictions. The MoU was explicitly positioned as part of deepening India–Netherlands cooperation on critical technologies.

Tata Electronics, established in 2020 as a greenfield venture of the Tata Group, now spans electronics manufacturing services, semiconductor assembly and test, foundry and design services, with operations in Gujarat, Assam, Tamil Nadu and Karnataka plus offices in the US, Taiwan and Singapore. ASML describes the Dholera engagement as one element of a broader partnership strategy Tata is assembling across equipment, process and design technology, and materials.

Execution remains the open question. Fab construction schedules slip routinely, yield ramps on a licensed process are rarely smooth, and building a lithography-capable workforce from a standing start is a multi-year undertaking. The December 2026 trial production target will be the first real test of whether India's semiconductor push has moved from announcement to output.