Tata Electronics and ASML ink $11 billion semiconductor pact amid Modi’s Netherlands visit
Indian Prime Minister Narendra Modi’s visit to the Netherlands has facilitated a major investment deal between Tata Electronics and Dutch technology firm ASML, signalling a deepening of economic and strategic ties between the two nations.
Tata Electronics has entered into a definitive agreement with Dutch technology giant ASML to establish a significant semiconductor manufacturing facility in Dholera, Gujarat. The deal involves an investment of $11 billion by Tata Electronics, with ASML providing the advanced lithography equipment necessary to support production. The facility is designed to manufacture chips for the artificial intelligence and automotive sectors, among other applications.
The announcement was made during Indian Prime Minister Narendra Modi’s current visit to the Netherlands, marking his second trip to the country since the inaugural India-Nordic summit in 2018. ASML, recognised as Europe’s largest technology company by market value, manufactures the critical lithography machines required for high-end microchip production. Christophe Fouquet, ASML’s chief executive, stated that the company sees many compelling opportunities in India’s expanding semiconductor industry and is committed to establishing long-term partnerships in the region.
The industrial agreement coincides with high-level diplomatic discussions between Prime Minister Modi and his Dutch counterpart, Rob Jetten. Modi described their conversations as extensive, covering a broad spectrum of issues. He indicated that a key focus was defence and security, with both leaders discussing the potential for an action plan to strengthen the defence industry. Further collaboration was also proposed in the areas of space travel, maritime systems, and maritime security.
New Delhi is actively seeking foreign technology and investment to bolster domestic manufacturing capabilities and generate employment. The European Union has increasingly identified India, as the world’s most populous nation and one of its fastest-growing economies, as a pivotal future market. This strategic alignment supports the development of Tata’s semiconductor hub in Dholera, which is located in Modi’s home state.
Beyond the industrial and defence dimensions of the visit, officials from both nations are negotiating more flexible visa arrangements for Indian students and workers. During his itinerary, Modi also met with King Willem-Alexander and addressed the Indian diaspora. He is expected to inspect centuries-old Chola copper plates being returned to India by Leiden University. Following his engagements in the Netherlands, Modi will proceed to Sweden for discussions with Prime Minister Ulf Kristersson regarding trade, innovation, and green technology cooperation.
