ASML and Tata Electronics to Partner on India Semiconductor Fab

Tata Electronics and ASML have entered into a strategic partnership agreement aimed at bolstering the development of India’s semiconductor manufacturing ecosystem, particularly focusing on Tata Electronics’ upcoming 300 mm wafer fab in Dholera, Gujarat.

As per the Memorandum of Understanding (MoU), ASML will provide its lithography systems and associated solutions to facilitate the establishment and scaling up of production at the facility, which is poised to be India’s inaugural commercial 300 mm semiconductor fab. The agreement encompasses workforce training, local supply chain enhancement, and enduring research and development collaboration.

For readers of eeNews Europe, this collaboration underscores the increasing significance of Europe’s expertise in semiconductor equipment within emerging chip manufacturing regions. It also emphasizes the deepening geopolitical and industrial connections between Europe and India concerning critical semiconductor technologies.

Lithography at the core

The Dholera fab stands out as one of India’s most ambitious semiconductor manufacturing ventures to date, with an envisaged investment of US$11 billion. The facility is anticipated to churn out chips for automotive, mobile, AI, and various other applications utilizing process technologies spanning from 28nm to 110nm.

Given the pivotal role lithography plays in semiconductor production, ASML’s involvement holds significant weight. The Dutch company has indicated that the partnership extends beyond mere equipment provision and will encompass endeavors to fortify local semiconductor capabilities in the long run.

Dr. Randhir Thakur, CEO and managing director of Tata Electronics, expressed enthusiasm about the collaboration, stating, “We are thrilled to join forces with ASML, a company renowned for its innovation and leadership in lithography, and for empowering semiconductor customers worldwide.” He added, “ASML’s profound expertise in comprehensive lithography solutions will ensure the timely ramp-up of our fab in Dholera, establish a resilient and trusted supply chain for our global clientele, drive innovation, and nurture local talent.”

Building talent and resilience

Alongside equipment deployment, the two companies have outlined plans to expedite training programs for engineers and semiconductor specialists in India. Talent development has emerged as a significant hurdle for the country as it endeavors to establish a domestic chip industry capable of competing on a global scale.

Tata Electronics has disclosed that it is already collaborating with international partners and academic institutions to fortify semiconductor education and technical skills. The company had previously partnered with Powerchip Semiconductor Manufacturing Corporation (PSMC) to access manufacturing technologies and process expertise.

Christophe Fouquet, president and CEO of ASML, remarked, “India’s rapidly expanding semiconductor sector presents numerous compelling opportunities, and we are dedicated to forging enduring partnerships in the region.”

He further added, “The signing of this Memorandum of Understanding today signifies a significant milestone, and we eagerly anticipate close collaboration with Tata Electronics and its broader ecosystem.”