Prime Minister Narendra Modi arrived in the Netherlands as part of his European tour, with India’s semiconductor ambitions emerging as one of the key focus areas during the visit.
At the center of these discussions is Dutch technology giant ASML, the world’s leading manufacturer of semiconductor lithography machines that are essential for producing advanced microchips.
India’s push to become a global semiconductor manufacturing hub heavily depends on access to ASML’s highly specialised technology, making the company a critical partner in the country’s long-term chip strategy.
India’s Semiconductor Push
India has launched an ambitious semiconductor programme aimed at reducing dependence on imported chips while building a domestic electronics manufacturing ecosystem.
One of the biggest projects under this initiative is the proposed $14 billion semiconductor fabrication facility by Tata Electronics in Dholera, Gujarat, being developed in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation.
Union Minister Ashwini Vaishnaw had earlier confirmed that the Dholera facility would rely on ASML’s advanced lithography systems for chip production.
Why ASML Is So Important
Lithography is considered the most advanced and expensive stage of semiconductor manufacturing, where microscopic circuit patterns are printed onto silicon wafers.
ASML dominates this highly specialised sector globally. The company controls more than 80% of the worldwide lithography equipment market and holds a complete monopoly over Extreme Ultraviolet (EUV) lithography systems, which are necessary for manufacturing advanced chips below the 7-nanometer level.
The company supplies equipment to some of the world’s largest chipmakers, including Taiwan Semiconductor Manufacturing Company, Samsung Electronics and Intel.
Industry experts note that no alternative company currently possesses the technological capability to manufacture these sophisticated machines at scale.
Geopolitical Importance
ASML has also become a major player in the ongoing technology competition between the United States and China.
Due to pressure from the US government, the Dutch company has faced strict export controls preventing it from selling some of its most advanced chipmaking systems to China.
As global supply chains shift and companies look for stable manufacturing alternatives, India is positioning itself as a reliable destination for semiconductor investments through its “China-plus-one” strategy.
Expanding Presence In India
ASML is gradually strengthening its operational footprint in India to support the country’s growing semiconductor ecosystem.
The company plans to establish a customer support office in Gujarat’s GIFT City, which will later expand closer to the Dholera semiconductor hub to assist upcoming fabrication facilities.
Indian officials believe the partnership with ASML could become a cornerstone of the India Semiconductor Mission, helping the country build advanced chipmaking capabilities and attract global technology investments in the years ahead.
Originally published on 24×7-news.com.
