India’s Tata and Dutch giant ASML sign semiconductor deal during Modi visit | International Trade News
Tata Electronics Partners with ASML to Establish Semiconductor Plant in India
NEW DELHI (AP) — India’s Tata Electronics has entered into an agreement with Dutch technology firm ASML to construct a significant semiconductor manufacturing facility in western India. The announcement coincided with Prime Minister Narendra Modi’s visit to the Netherlands as part of his European tour.
The deal, revealed on May 17, 2026, will facilitate the development of a semiconductor plant in Dholera, Gujarat, Modi’s home state. ASML, recognized as Europe’s largest technology company by market capitalization, specializes in advanced lithography machines essential for producing high-performance microchips used in various products, from smartphones to automobiles.
ASML has committed to assist Tata Electronics in establishing and scaling production at the new facility by providing its state-of-the-art chipmaking equipment. Tata Electronics plans to invest $11 billion in the plant, which aims to produce chips for sectors including artificial intelligence and the automotive industry.
Christophe Fouquet, ASML’s chief executive, expressed optimism about the opportunities within India’s burgeoning semiconductor sector. “We are committed to establishing long-term partnerships in the region,” he stated in a press release.
This partnership aligns with efforts by India and the Netherlands to strengthen economic ties, as New Delhi seeks to attract foreign technology and investments to enhance its manufacturing and job creation efforts. The European Union is increasingly recognizing India as a critical future market due to its status as the world’s most populous country and one of its fastest-growing economies.
During his visit, Modi engaged in discussions with Dutch Prime Minister Rob Jetten and met with King Willem-Alexander. In a message shared on social media platform X, Modi detailed the breadth of their conversations, which included topics related to defense and security. He indicated the potential for developing an action plan for the defense industry and exploring collaborations in space travel and maritime security.
Modi also addressed members of the Indian diaspora and is scheduled to inspect ancient Chola copper plates being returned to India by Leiden University. Additionally, Indian and Dutch officials are negotiating a more flexible visa arrangement to benefit Indian students and workers in the Netherlands.
Following his engagements in the Netherlands, Modi will travel to Sweden for discussions with Prime Minister Ulf Kristersson, focusing on trade, innovation, and green technology cooperation. This visit marks Modi’s second trip to Sweden since attending the inaugural India-Nordic summit in 2018.
