India: Tata Electronics, ASML sign MoU for Dholera semiconductor manufacturing unit

• ASML to supply advanced lithography systems for India’s first commercial 300-mm semiconductor facility
• Dholera fab targets 50,000 wafer starts/month under estimated INR 91,000 cr ($11 bn) investment

Tata Electronics and Dutch chipmaking equipment-maker ASML signed a Memorandum of Understanding (MoU) for the supply of lithography systems and related technologies for India’s first commercial 300-mm semiconductor fabrication facility at Dholera, Gujarat, in a major boost to the semiconductor manufacturing ecosystem in the country.

The partnership will support Tata Electronics’ semiconductor fabrication project, which is being developed with an estimated investment of around INR 91,000 crore ($11 billion). The Dholera facility is expected to have a production capacity of up to 50,000 wafer starts per month (WSPM) and manufacture chips for sectors including automotive, communications, computing, artificial intelligence (AI), and consumer electronics, the company said in a statement.

The project is being developed in collaboration with Taiwan-based Powerchip Semiconductor Manufacturing Corporation (PSMC), with planned process technologies spanning 28nm, 40nm, 55nm, 90nm and 110nm nodes. Industry participants view access to advanced lithography systems as critical for precision chip manufacturing and process stability.

Partnership extends beyond equipment supply

Besides supplying lithography machines and technical know-how, the partnership will focus on talent development, knowledge transfer, and strengthening semiconductor ecosystem capabilities in India. The collaboration is also expected to support local research, supplier development, and long-term manufacturing readiness.

Semiconductor ecosystem gains momentum

The development comes as India accelerates efforts to establish domestic semiconductor manufacturing under its localisation strategy and reduce dependence on imports. The Dholera project is expected to play a key role in building upstream and downstream capabilities across electronics manufacturing and component supply chains.

The partnership is expected to support progress at the Dholera semiconductor facility, though execution timelines, ecosystem readiness, and skilled workforce availability will remain key factors for the sector’s expansion.