Tata Electronics and ASML Partner for India's First Semiconductor Fab

Tata Electronics and ASML are joining forces to establish chip manufacturing in India. This partnership will support Tata Electronics' new semiconductor Fab in Dholera, Gujarat. ASML's advanced lithography tools will be deployed. The collaboration aims to accelerate local talent training and build a resilient supply chain.

Indian electronics and semiconductor manufacturing player Tata Electronics on Saturday said it has signed a Memorandum of Understanding (MoU) with a leading semiconductor equipment manufacturer, ASML for its lithography tools, critical for India's first fab and advancing of the semiconductor manufacturing ecosystem in India.

ET was the first to report on September 25 last year that the company was in talks with the Dutch multinational. The news of the partnership comes as prime minister Narendra Modi arrived in the Netherlands as part of a high-profile European tour focused heavily on clean technologies, renewable energy and advanced manufacturing.

The collaboration will focus on deploying the Veldhoven, Netherlands-headquartered ASML’s holistic suite of advanced lithography tools and solutions for Tata Electronics' upcoming fab in Dholera. It will also accelerate training of local talent, lithography intensive skill development, as well as proactive supply chain resilience. Given the importance of lithography in chip manufacturing, the companies said they will develop the R&D infrastructure critical for the long-term success of the fab.

“India’s rapidly expanding semiconductor sector represents many compelling opportunities, and we are committed to establishing long-term partnerships in the region," president and CEO, ASML, Christophe Fouquet said in a statement.

Further, he said the signing of the MoU marks an important milestone and ASML is looking forward to close collaboration with Tata Electronics and its broader ecosystem.

"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," he said.

Further, the companies said they will cooperate to develop domestic talent, supply chain, and research initiatives to strengthen the talent pipeline and ensure a readily available pool of experts.

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

He said the 'foundational partnership' with ASML would bring a shared commitment to the highest standards of quality, yield, and manufacturing excellence, and would go a long way in building a strong semiconductor ecosystem in India.

With a planned total investment of $11 billion, the fab in Dholera will manufacture semiconductors for a variety of applications across automotive, mobile devices, artificial intelligence (AI), and other key segments, to serve customers globally.

Tata Electronics has partnered with key global customers and ecosystem companies, starting with PSMC (Powerchip Semiconductor Manufacturing Corporation, Taiwan) and later companies like Tokyo Electron, Rohm, Merck among a slew of others.

On December 8, American chipmaker Intel inked an agreement with the homegrown firm to explore manufacturing and packaging of Intel products for local markets at their upcoming fab and OSAT (Outsourced Semiconductor Assembly and Test) facilities, as well as a collaboration for advanced packaging in India.

(Catch all the Technology News News, and Latest News Updates on The Economic Times.)