May 18, 2026 /SemiMedia/ — Tata Electronics and ASML have signed an agreement to support the construction of India’s first front-end semiconductor fabrication plant in Gujarat, marking a key step in the country’s efforts to build a domestic chip manufacturing ecosystem.

Under the partnership, ASML will provide semiconductor manufacturing technology for Tata Electronics’ planned 300mm wafer fab in Dholera, Gujarat. The facility, backed by an investment of about $11 billion, is expected to manufacture chips for automotive, mobile and artificial intelligence applications.

The project comes as India ramps up incentives to attract semiconductor manufacturing and supply chain investments. New Delhi has committed billions of dollars in subsidies to support chip production, with several semiconductor projects already underway across the country.

Tata Electronics has emerged as one of the leading participants in India’s semiconductor push. In addition to the Dholera fab, the company has announced another semiconductor investment project in Gujarat valued at roughly $14 billion.

ASML Chief Executive Officer Christophe Fouquet said India’s rapidly growing semiconductor sector presents long-term opportunities for cooperation, adding that the company aims to deepen its presence in the region.

India’s foreign ministry said Prime Minister Narendra Modi and Dutch Prime Minister Dick Schoof witnessed the signing ceremony. The two leaders also met executives from Dutch companies operating in sectors including technology, energy and port infrastructure.

India has been encouraging European companies to increase investment in semiconductors, renewable energy, digital infrastructure and healthcare as it seeks to strengthen industrial cooperation with the European Union.

The agreement also reflects a broader shift in the global semiconductor industry. Amid tighter U.S. export restrictions on advanced chip technologies to China, European semiconductor companies are accelerating efforts to diversify geographically and expand into emerging markets such as India.