Tata Electronics and Dutch equipment maker ASML signed a memorandum of understanding on May 16, 2026, to build India's first commercial semiconductor fabrication plant [1].
This agreement marks a critical step in India's effort to establish a domestic chip ecosystem. By producing semiconductors locally, the country aims to reduce its reliance on imports and support high-growth sectors including automotive, AI, defense, and mobile devices [1, 3].
The facility will be located in Dholera, Gujarat [1, 2]. The project involves a total investment of $11 billion [1]. As part of the deal, ASML will supply the essential lithography tools required to manufacture the chips [1].
The plant is designed to produce 300mm wafers [2, 4] using a 28nm process [2]. Once operational, the facility is expected to reach a target output of 50,000 wafers per month [2].
Industry experts said the project is a front-end fabrication plant [1]. This means the facility will handle the initial stages of chip creation, from the silicon wafer to the completed circuit, rather than focusing solely on assembly and testing. The 28nm node is widely used for a variety of applications, including power management and automotive electronics, technologies that are central to India's industrial goals [2, 3].
“India's first commercial semiconductor fabrication plant”
The partnership between Tata Electronics and ASML signals India's transition from a chip consumer to a producer. By utilizing 28nm technology, India is targeting a 'sweet spot' of semiconductor manufacturing that is less complex than cutting-edge 3nm or 5nm chips but essential for the global automotive and industrial IoT markets. This move reduces supply chain vulnerability and positions Gujarat as a potential regional hub for electronics manufacturing.
