Tata Electronics and ASML Partnership Marks a Major Step for India's Semiconductor Ambitions

Sarah J4 min read

On May 16, 2026, Tata Electronics and ASML signed a Memorandum of Understanding to set up India's first commercial 300mm semiconductor fabrication plant in Dholera, Gujarat. The signing took place during Indian Prime Minister Narendra Modi's visit to the Netherlands, with Dutch Prime Minister Dick Schoof also present, reflecting the diplomatic weight both governments are placing on the deal.

The partnership is significant because ASML is considered one of the most critical companies in the global semiconductor industry. The Dutch company manufactures advanced lithography machines used to produce semiconductor chips. Major chipmakers such as TSMC, Intel, and Samsung rely on ASML equipment for chip manufacturing.

Under the agreement, ASML will deploy its suite of lithography tools and solutions to enable the establishment and ramp-up of the Dholera fab, covering talent development, lithography-intensive skill development, and proactive supply chain resilience. The companies will also develop R&D infrastructure to support the long-term success of the facility.

The Specific Technology Involved

This is where the headline needs grounding. Both TSMC's cutting-edge 2nm fabs and the Dholera facility use 300mm wafers, but the real metric defining a chip's capability is the process node. The Dholera fab will operate at 28nm to 110nm nodes, using ASML's DUV (Deep Ultraviolet) lithography tools, not the more advanced EUV systems used for sub-10nm production.

The specific nodes covered are 28nm, 40nm, 55nm, 90nm, and 110nm, according to the ASML press release, with process technology licensed from Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC).

ASML's most sophisticated tools, used for producing 3nm and 5nm chips globally, remain outside the immediate scope. The partnership instead lays groundwork for potential future upgrades.

Production Targets and Chip Types

At full capacity, the fab will produce up to 50,000 wafers per month, manufacturing power management ICs, display drivers, microcontrollers, and high-performance computing chips for automotive, computing and data storage, wireless communications, and AI applications.

Initial commercial production is scheduled for late 2026, which is an aggressive timeline for a greenfield semiconductor project, requiring seamless coordination between construction, equipment installation, and testing. Throughout 2026, ASML tools will be installed and calibrated to meet the requirements of the 28nm to 110nm nodes.

The Dholera site was formally designated a Special Economic Zone in April 2026.

The Partnership Stack Behind the Fab

The ASML deal is not a standalone arrangement. It sits on top of a broader partnership architecture that Tata has been assembling over the past two years.

In September 2024, Tata Electronics completed a definitive agreement with PSMC of Taiwan, covering technology transfer for the full node range from 28nm to 110nm. PSMC is the world's seventh-largest pure-play foundry, operating four 12-inch and two 8-inch fabs in Taiwan with annual output exceeding 2.1 million 12-inch equivalent wafers.

Tata Electronics has already dispatched over 200 personnel to PSMC's Taiwan facilities for training in skills required to operate the Dholera fab, according to the Economic Times. The first chip from the Dholera unit is expected in December 2026, according to India's federal IT minister Ashwini Vaishnaw.

Tata's total investment in semiconductor technology reportedly reaches $14 billion, including collaborations with Intel. Intel is positioned as a potential early customer, with a focus on manufacturing and packaging Intel products for the Indian market and developing advanced packaging capabilities. Separately, Tata is building an OSAT (Outsourced Semiconductor Assembly and Test) facility in Assam.

What Tata Electronics Is

Tata Electronics is a wholly owned subsidiary of Tata Sons. Founded in 2020 as a greenfield venture, the company operates across electronics manufacturing services, semiconductor assembly and test, semiconductor foundry services, and design services. It has become a significant manufacturing partner in the Apple supply chain through investments connected to Wistron and Pegatron operations in India.

Why Mature Nodes Matter

The 28nm to 110nm range draws less attention than cutting-edge AI chip nodes, but it is where global supply chain pressure has been most acute and sustained. These specific nodes are critical for the automotive, consumer electronics, and power management sectors, which currently face the highest supply chain pressures.

India's heavy dependence on imported chips has been a strategic vulnerability, sharpened by COVID-era supply disruptions and accelerating US-China technology decoupling. Building domestic capacity at mature nodes addresses immediate demand while creating the manufacturing base, engineering talent, and supplier ecosystem that any future move toward advanced nodes would require.

The project is projected to create over 20,000 direct and indirect skilled jobs. Tata's multi-fab vision for Dholera indicates this facility is intended as the first in a longer-term build-out, not a single standalone investment.

The Bigger Picture

India has committed significant capital in subsidies and incentives to attract semiconductor investment across multiple simultaneous projects. The Tata-ASML-PSMC stack at Dholera is currently the most advanced and best-resourced of these, with an equipment partner, a process technology licensor, anchor customers in discussion, and a trained workforce already in preparation.

The facility is also expected to integrate advanced packaging and testing capabilities over time, which would extend its relevance beyond wafer fabrication into the broader semiconductor value chain.

For India, the significance is less about immediate competitive threat to TSMC or Intel and more about whether the country can demonstrate that a credible, globally trusted semiconductor supply chain can be built on its soil. The Dholera fab is the first real test of that proposition.

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Hyderabad-based Skyroot Aerospace successfully launched Vikram-1, India’s first privately developed orbital launch vehicle, from the Satish Dhawan Space Centre in Sriharikota on July 18, 2026. The rocket lifted off at 12:05:30 p.m. Indian Standard Time as part of Mission Aagaman, meaning “arrival.”Around 15 minutes after launch, Vikram-1 successfully deployed payloads into a low Earth orbit at an altitude of approximately 450 kilometres. ISRO confirmed that two satellites—Skyroot’s SCOPE and a satellite from Grahaa Space—were injected into orbit. Other payloads remained attached to the upper stage to conduct in-orbit experiments.India has operated orbital launch vehicles through the Indian Space Research Organisation since the successful launch of the Rohini satellite aboard SLV-3 in 1980. The significance of Mission Aagaman is that Vikram-1 was developed and launched by a private Indian company, although ISRO and the Indian National Space Promotion and Authorisation Centre provided facilities, technical support, safety oversight and regulatory clearances.The Vikram-1 RocketVikram-1 is a small-satellite launch vehicle standing approximately 22 metres tall. It is designed to carry payloads of up to 350 kilograms into low Earth orbit.The four-stage vehicle consists of three solid-fuel stages and a liquid-fuel orbital adjustment module. Its upper stage is powered by a 3D-printed liquid engine and is designed to support precise orbital deployment. The rocket also incorporates carbon-composite structures, avionics and thermal-protection technologies developed by Skyroot.The Vikram launch-vehicle series is named after Vikram Sarabhai, the scientist widely regarded as the father of India’s space programme.Skyroot is positioning Vikram-1 as a dedicated and rideshare launcher for small satellites requiring customised orbital deployment. The company argues that such missions can provide customers with greater control over launch timing and orbital destination than travelling as secondary payloads on larger rockets.Payloads and ExperimentsThe mission carried multiple customer payloads and in-orbit experiments from Indian and international organisations.ISRO has officially confirmed that two satellites, SCOPE and Grahaa, were successfully placed into low Earth orbit. The remaining payloads were carried on the upper stage for in-orbit experiments.Before launch, the announced mission manifest included:Skyroot’s SCOPE satelliteGrahaa Space’s SOLARAS S3 satelliteA technology demonstration from German space company DCUBEDEmbrace, a robotic arm experiment developed by Cosmoserve Space for orbital-debris captureThe announced manifest also included symbolic payloads: a floral-shaped artwork called Cosmic Bloom and a miniature 18-karat gold rocket honouring Indian scientific figures C.V. Raman, Vikram Sarabhai and A.P.J. Abdul Kalam. These items were listed before launch, but official post-launch statements have not separately confirmed the operational status of every individual experiment.Mission Aagaman was intended to test Vikram-1’s propulsion, avionics, telemetry, stage separation, guidance, navigation and control systems under actual flight conditions. Skyroot described the flight as the first of a planned series of development missions ahead of routine commercial operations.From Vikram-S to Vikram-1Skyroot Aerospace was founded in 2018 by former ISRO engineers Pawan Kumar Chandana and Naga Bharath Daka.The company completed its first spaceflight in November 2022 with Vikram-S, a suborbital technology-demonstration rocket launched under Mission Prarambh. That flight made Skyroot the first private Indian company to launch a rocket into space from Indian soil, although Vikram-S did not enter orbit.Vikram-1 represents a significantly more demanding technical achievement. Reaching orbit requires a rocket not only to climb above Earth’s atmosphere but also to accelerate its payload to the horizontal velocity needed to remain in orbit. The vehicle must complete a carefully timed sequence of propulsion, stage-separation and navigation operations before deploying its payloads.India opened more of its space sector to private participation in 2020 and subsequently established a framework through IN-SPACe for private companies to access ISRO facilities and technical expertise. For Vikram-1, ISRO supported solid-motor casting and testing, liquid-engine testing, vehicle integration, trajectory analysis and launch-pad operations.Reaction and Next StepsPrime Minister Narendra Modi called the successful launch a defining moment in India’s space journey. He said growing private-sector participation was opening new frontiers and accelerating innovation, adding that the achievement would encourage young people to “dream bigger and innovate fearlessly.”Skyroot said Mission Aagaman was a test flight and that it expects to conduct additional development flights before beginning routine commercial launches. The company ultimately aims to provide frequent, dedicated launch services for small satellites.The achievement does not replace India’s longstanding government space-launch capability. Instead, it expands the country’s space ecosystem by demonstrating that an Indian private company can independently develop an orbital-class launch vehicle and successfully place satellites into orbit with institutional support from ISRO and IN-SPACe.Sources: Indian Space Research Organisation, Prime Minister’s Office of India, Reuters, Skyroot Aerospace and Space.com.Image courtesy: Skyroot AerospaceSEINET is an execution focused network for operators building partnerships and growth in EU-India-UK corridor in four key clusters - Space, Deep Tech, Defense and Energy. Apply to sign up www.startupeuropeindia.net

Sat, Jul 18, 2026