ASML enters India: What does its Tata partnership mean for country’s semiconductor ambitions?

Semiconductor equipment maker ASML has begun operations in India and plans to initially hire 20-30 young engineering graduates to meet its requirements, a senior company official said.

Speaking on the sidelines of SEMICON India 2026, ASML Executive Vice President and Head of Customer Support Lin Kiat Yap told PTI that the company's scaling-up plan depends on the success of Tata Electronics' chip unit in India and on India's ambition to grow in the semiconductor space.

Asked about when his company is going to start India operations and scale it up, Yap said, "Right now", and added, "We are probably going to start off at 20-30 people. We will see how fast it scales. It really depends on the ambitions of India, and it really depends on the ambitions of Tata."

Why ASML's India entry matters ASML has a monopoly on advanced lithography technology, and no advanced chip in the world can be made without its equipment. The company calls itself an innovation leader in the global semiconductor industry. “We make machines that chipmakers use to mass produce microchips,” it says.

The company provides advanced lithography technology, which enables the fabrication of circuits on silicon wafers. In a way, it paves the foundation for converting a silicon wafer into an active component.

“With it [lithography technology], the world’s top chipmakers are creating microchips that are more powerful, faster and energy efficient,” the company says on its website.

ASML's partnership with Tata Electronics ASML’s expansion is closely linked to the development of India’s semiconductor ecosystem, particularly to Tata Electronics’ upcoming 300 mm semiconductor fabrication facility in Dholera, Gujarat.

ASML and Tata Electronics signed a strategic partnership in May 2026 under which ASML will support the establishment and ramp-up of the Dholera fab with advanced lithography tools and solutions. The partnership also covers local talent development, supply-chain resilience and research initiatives.

During the event, ASML Chief Strategic Sourcing and Procurement Officer Allan Wayne said Tata Electronics is the first customer in India to have a 300-millimetre semiconductor fab with the production capacity of 50,000 wafers per month.

"If we're going to be scaling this up, we need to be able to build many fabs here. This is why we are very confident in what we see here now with the policies coming from Prime Minister Narendra Modi and his team for the ecosystem and, of course, the great talent that we see in India," he said.

Tata Electronics semiconductor plant is scheduled to begin operations in 2028. Tata Electronics estimates to have around 450 vendors to support at the Dholera plant, and the company is building 363 vendor parks to house them.

In March, the Ministry of Electronics & Information Technology said that ASML is exploring partnerships with Indian companies to support the next phase of the India Semiconductor Mission, with a focus on design, materials and manufacturing ecosystem.

“India’s semiconductor push is gaining pace...A strong step toward jobs, innovation, and self-reliance,” the government said in a post on social media.

ASML backs Tata Electronics' semiconductor ambitions Yap said many ASML customers are scaling up their facilities in their own countries.

“I think it's good that Tata is taking the very first steps in seeding the ecosystem. I think it's also very important to continue to grow the ecosystem, to bring in a second player, to bring in a third player," he told PTI.

"We want to make Tata successful because I think when people see Tata being a success, I think people will start to spend a little bit more time, be a little bit more focused in India and see the potential opportunities," Yap said.

ASML's India strategy and semiconductor ambitions Meanwhile, ASML Chief Strategic Sourcing and Procurement Officer Allan Wayne said ASML enters a region not only to support customers but to leverage talent.

"As you go on into 2032, India's projection and India's ambition is to have between 15% and 25% of the wafer fab of India's local semiconductor demand. That means you're going to have to have several fabs by 2032," Wayne said.

The government has announced the Semicon 2.0 scheme with an incentive of around ₹1.27 lakh crore or $13.5 billion to build the semiconductor ecosystem.

According to Union Minister Ashwini Vaishnaw, investment proposals worth $12 billion are likely to come up under the new scheme for chip production.

Wayne said that the government's ambition to meet 35-50% of India's semiconductor demand locally by 2035 implies the country will need about a dozen large-capacity chip manufacturing plants.

"Then at some point, we may very well be looking at manufacturing. I see there's a question mark there because there are no plans for that as it stands at present," Wayne said.

Success of Tata's first 300 mm fab remains critical He said talent and innovation will be critical for the growth of chip manufacturing in the country.

"I think this [innovation] is something that I'm not concerned at all about for India, especially after what I have seen in the last few days and in the last few months starting to come to India. But I think it's important that this first 300-mm fab in Tata is able to test and qualify, have good quality and yield and hit on schedule so that there are no delays," Wayne said.

"Time to market and our ability to deliver on time, I think that's something that people are looking for. And you're going to start to see, I think, many more of our customers coming to India. That means we need to be able to, of course, have the talent to be able to support all of that. We are very happy to be here now," Wayne said.