ASML Starts India Operations, Ties Expansion to Tata Electronics Chip Unit and Government Semiconductor Push

Key facts

• Semiconductor equipment maker ASML has begun operations in India and plans to initially hire 20-30 young engineering graduates.
• ASML's scaling-up plan in India depends on the success of Tata Electronics' chip unit and India's semiconductor ambitions.
• Tata Electronics is the first customer in India with a 300-millimetre semiconductor fab having a production capacity of 50,000 wafers per month.
• The Tata Electronics semiconductor plant is scheduled to begin operations in 2028.
• Tata Electronics estimates supporting around 450 vendors at its Dholera plant and is building 363 vendor parks to house them.
• The government announced the Semicon 2.0 scheme with an incentive of around ₹1.27 lakh crore ($13.5 billion) to build the semiconductor ecosystem, with investment proposals worth $12 billion expected under it.
• India's projection is to have between 15 per cent and 25 per cent of wafer fab capacity for its local semiconductor demand by 2032, and to meet 35-50 per cent of semiconductor demand locally by 2035, requiring about a dozen chip manufacturing plants.