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India Taps Dutch ASML and Taiwan’s PSMC for First Semiconductor Fab in Gujarat

Flags of the Netherlands, India, and Taiwan displayed side by side.
May 18, 2026 06:41 PM IST | Written by Supriya Singh | Edited by Pratima O Pareek

As India expands its semiconductor and AI ambitions, the country is increasingly partnering with some of the semiconductor industry’s most critical players for technology and expertise.

Tata Electronics has partnered with Dutch ASML and Taiwan’s PSMC (Powerchip Semiconductor Manufacturing Corporation) to support India’s planned US$11 billion commercial semiconductor fab in Dholera, Gujarat.

The recent collaboration will focus on deploying ASML’s advanced lithography tools and solutions for the Dholera fab. Lithography is a semiconductor manufacturing process used to print microscopic circuit patterns onto silicon wafers during chip production.

The Dutch chipmaking equipment maker’s lithography technology plays a significant role in manufacturing advanced semiconductors globally.

The partnership will help Tata Electronics establish and ramp up its upcoming 300mm (12-inch) semiconductor fab, the modern global standard for commercial chip production, while also supporting semiconductor research, talent development, and supply chain resilience in India.

The Dholera semiconductor fab facility will manufacture semiconductors for applications across various industries, including artificial intelligence (AI).

Tata Electronics has also partnered with Taiwan-based PSMC, gaining access to semiconductor process technologies including 28nm, 40nm, 55nm, 90nm, and 110nm, after signing a definitive agreement on September 26, 2024. Under the partnership, PSMC will provide technology transfer, engineering expertise, and support for the design and construction of the Dholera semiconductor fab.

Prime Minister Narendra Modi was on a two-day visit to the Netherlands as part of his five-nation tour.

India and the Netherlands also agreed to elevate ties to a strategic partnership and expand cooperation in areas including trade and investment, defence and security, cybersecurity, semiconductors, artificial intelligence, quantum technologies, science, and innovation.

“Economic cooperation is a key pillar of the India-Netherlands friendship. The India-EU FTA offers infinite possibilities. There is immense scope to work together in fintech, critical minerals, semiconductors, green hydrogen and AI,” Modi said in a post on X.

India has approved 12 semiconductor manufacturing projects under the India Semiconductor Mission (ISM), with cumulative investments of around ₹1.64 lakh crore, covering semiconductor fabs, OSAT (Outsourced Semiconductor Assembly and Test) and ATMP (Assembly, Testing, Marking, and Packaging) units, and compound semiconductor facilities, according to Indian government data.

Also Read: PM Modi to Launch ₹3,300 Crore Kaynes Semiconductor Unit in India

Authors

  • AI FrontPage Reporter Supriya Singh

    Supriya Singh is a Reporter at AI FrontPage covering the AI & Education and AI & Jobs beats. She brings six years of print and digital experience, including three years at The Asian Age, where she reported on higher education, Delhi government, and crime. She is based in Delhi-NCR.

    LinkedIn
  • Pratima Pareek, Editor and Co-founder of AI FrontPage

    Pratima O Pareek is an Editor and Co-Founder of AI FrontPage. A gold medalist in Mass Communication and Journalism, she's worked across national and international newsrooms, bringing sharp editorial instincts and a commitment to clarity. She believes in cutting through the noise to deliver stories that actually matter.
    Off the clock, she watches offbeat cinema, follows tennis, and explores new places like a traveler, not a tourist.

    LinkedIn

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