Tata and Dutch giant ASML sign semiconductor deal during Modi visit

Monday, 18 May 2026 00:02 - - {{hitsCtrl.values.hits}}

India’s Tata Electronics has signed a deal with Dutch technology giant ASML to build a major semiconductor plant in western India, as Indian Prime Minister Narendra Modi visited the Netherlands during his European tour.

The agreement, announced on Saturday, will support the development of Tata’s semiconductor facility in Dholera, Gujarat – Modi’s home State.

ASML, Europe’s largest technology company by market value, manufactures advanced lithography machines used to produce high-end microchips found in products ranging from mobile phones to cars.

The Dutch company said it would help “establish and ramp up” production at the plant by supplying its cutting-edge chipmaking tools.

Tata Electronics plans to invest $ 11 billion in the facility, which is expected to manufacture chips for artificial intelligence (AI), the automotive industry, and other sectors.

ASML Chief Executive Christophe Fouquet said the company saw “many compelling opportunities” in India’s growing semiconductor industry.

“We are committed to establishing long-term partnerships in the region,” Fouquet said in a statement.

The deal comes as India and the Netherlands move to deepen economic ties, with New Delhi seeking foreign technology and investment to boost manufacturing and create jobs.

During his visit, Modi held talks with Dutch Prime Minister Rob Jetten and met King Willem-Alexander.