Tata Electronics has signed an agreement with Dutch technology conglomerate ASML to build a large-scale semiconductor manufacturing plant in western India, as part of Prime Minister Narendra Modi's European tour.
The deal, announced on Saturday (April 5), supports the development of Tata's chip facility in Dholera, Gujarat – Modi's home state. Under the terms, ASML will supply advanced lithography machines to help Tata "set up and accelerate" production at the plant.
ASML, Europe's largest technology company by market value, specializes in making photolithography equipment for advanced microchip manufacturing used in everything from smartphones to cars. ASML CEO Christophe Fouquet said the company sees "many attractive opportunities" in India's growing semiconductor industry and is committed to "establishing a long-term partnership in the region."
Tata Electronics plans to invest $11 billion in the facility, which is expected to produce chips for artificial intelligence, the automotive industry, and other sectors.
This agreement is part of deepening economic ties between India and the Netherlands as New Delhi seeks foreign technology and investment to boost manufacturing and job creation. The European Union increasingly views India – the world's most populous nation and one of its fastest-growing economies – as a critical future market.
During his visit, Modi held talks with Dutch Prime Minister Rob Jetten and met King Willem-Alexander. "My conversations with PM Rob Jetten were extensive and covered many subjects," Modi wrote on X (formerly Twitter). "One of them was defence and security. I mentioned the possibility of soon building an action plan for the defence industry. We can also work together in areas like space, maritime systems and maritime security."
Modi also addressed the Indian diaspora in the Netherlands and is expected to inspect centuries-old Chola bronze panels being returned to India by Leiden University. Indian and Dutch officials are also discussing a more flexible visa agreement for Indian students and workers in the Netherlands.
After the Netherlands, Modi will travel to Sweden for talks with Prime Minister Ulf Kristersson, focusing on trade cooperation, innovation, and green technology. This is his second visit to the Nordic country since attending the first India-Nordic summit in 2018.
