Tata’s secures lithography tech from ASLM for its chip manufacturing

Tata group’s electronic arm Tata Electronics signed a strategic agreement with the Dutch semiconductor equipment supplier ASML for India’s first 300 mm chip fabrication facility, according to a press release.

Why it matters: With this agreement, Tata’s USD 11 bn chip manufacturing factory has onboarded the lithography supplier that sits at the center of global chip manufacturing. The collaboration will focus on deploying ASML’s holistic suite of advanced lithography tools and solutions for Tata’s facility. Tata now has two critical links for its semiconductor — Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) for processor technology and ASML for lithography tools to put the factory in place.

Fab plan: Tata Electronics is developing its chip facility to make a full range of chips for electronics and AI. Its partnership with PSMC will transfer technology to manufacture legacy and mature node chips (like 28nm) that are used heavily in automotive, consumer electronics, and defense. ASML will also work with Tata Electronics on talent, supply-chain resilience, and research infrastructure, moving the project closer to the operational stage.

“We believe Tata Electronics is strongly positioned to realize its ambitions in expanding semiconductor capabilities. We are pleased and honored to contribute our technological expertise and to help nurture talent in India,” said Christophe Fouquet, CEO of ASML.

The agreement was signed in the presence of Prime Minister Narendra Modi and his Dutch counterpart Rob Jetten. The two leaders also met Dutch CEOs from the energy, ports, and technology sectors, with Modi urging Dutch companies to invest in semiconductors, renewable energy, digital technologies, and healthcare sectors in India.

For Gulf tech companies, Tata’s semiconductor manufacturing becomes an additional source for mature-node chips as India’s government is spending bns in incentives to bolster the country’s chip manufacturing as an alternative to Asian and US suppliers.

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