Dutch chip giant ASML eyes support office in GIFT City - The Economic Times
Dutch chip giant ASML eyes support office in GIFT City
By Dia Rekhi, ETtech Last Updated: Nov 28, 2025, 06:00:00 AM IST
Dutch semiconductor equipment maker ASML is looking to set up a customer support office in GIFT City in Gujarat, sources aware of the developments told ET.
"ASML executives visited GIFT City and conveyed their intent to set up an office to support their customer," one person cited above said. "They have indicated that they would like to begin with this office and then could move on to setting up a full-fledged facility in Dholera as work on the fab progresses."
ET was the first to report in September that ASML was in talks with Tata Electronics to be onboarded as a vendor. Neither have officially confirmed if the deal was sealed. "We are in the progress of establishing a customer support office in India. Our priority is to serve our customers," ASML said in a statement to ET.
Tata Electronics is building India's first semiconductor fabrication plant in Dholera in partnership with Taiwan's PSMC with a proposed investment of ?91,000 crore. The project is expected to begin chip production by December 2026 and will create over 20,000 skilled jobs.
ASML is the world's sole supplier of extreme ultraviolet (EUV) photolithography machines essential for producing the most advanced microchips. Analysts said the Tata fab will not require ASML's top of the line EUV tools but rather the older generation lithography machines that it specialises in. The Veldhoven, Netherlands- based firm, which is a key supplier to Taiwan Semiconductor Manufacturing Co and Samsung Electronics, is a critical cog in the global economy, as the semiconductors crafted with its tools power everything from smartphones to missiles.
"This should be in relation to the Tata Electronics fab in Dholera," another person said. "All major WFE (Wafer Fab Equipment) manufacturers, as part of tool installation and support, will set up a base."
PS
Copilot:
Yes — India’s semiconductor ambitions are backed by clear evidence: massive investments, government programs, and industry partnerships are all converging to build a domestic chip ecosystem.
Major Investments- The India Semiconductor Mission (ISM) has a ?76,000 crore outlay to boost local manufacturing, design, and talent.
- In 2025 alone, the government approved ten semiconductor projects worth ?1.6 trillion (USD 18.2 billion), covering fabs, packaging, and advanced materials.
- Tata Electronics is building India’s first major fab in Dholera, Gujarat with ?91,000 crore investment, aiming for chip production by December 2026.
New Facilities & Pilot Lines- SiCSem Pvt Ltd is setting up India’s first commercial Silicon Carbide fab in Bhubaneswar, critical for EVs and clean energy.
- RIR Power Electronics Ltd is investing ?618 crore to produce high-power SiC devices, reducing import dependency.
- IIT Bhubaneswar is advancing a pilot line for integrated power electronics, supported by a ?64 crore SiC research center and a new semiconductor park.
Market Growth- India’s semiconductor market is projected to grow from USD 45–50 billion in 2025 to USD 100–110 billion by 2030, signaling strong demand and ecosystem expansion.
- Electronics exports already rose from $29.1 billion in FY24 to $38.6 billion in FY25, driven by smartphone production.
Global Collaborations- At SEMICON India 2025, Tata Electronics signed MoUs with Merck (materials, infrastructure) and C-DAC (chip design/IP ecosystem), strengthening supply chain and domestic innovation.
- Partnerships with UK’s Clas-SiC Wafer Fab Ltd and US-based 3D Glass Solutions bring advanced packaging and substrate technologies to India.
Talent & R&D- India is investing in education and training pipelines: IIT Bhubaneswar offers MTech, MS, and PhD programs in semiconductor technology.
- Government plans to design and manufacture 30 strategic chipsets domestically, targeting both local and export needs.
Bottom Line
India’s chip ambitions aren’t just rhetoric — they’re backed by multi-trillion rupee investments, global partnerships, new fabs, pilot lines, and a growing talent base. The evidence shows India is positioning itself as a serious player in the global semiconductor supply chain, with Dholera’s fab as the flagship project and multiple specialized facilities across the country reinforcing the ecosystem.
Mike, given your focus on wafer-scale disruption, India’s push looks like a parallel to Southeast Asia’s packaging boom — but with a stronger emphasis on fab sovereignty. Would you like me to map how India’s fab-first strategy compares to the ATP-heavy investments in Malaysia, Philippines, and Singapore you’ve been tracking?
Gemini (Asked the exact same question based on same headline):
Yes, there is substantial evidence of India's strong semiconductor ambitions. The potential opening of a support office by ASML, a crucial player in the global chip supply chain, aligns with the Indian government's comprehensive strategic initiatives and significant investments from global corporations to build a robust domestic semiconductor ecosystem from design to manufacturing and packaging.
Key evidence of India's ambitions includes:
Government-Led Initiatives
- India Semiconductor Mission (ISM): Launched in 2022 with a budget of approximately $10 billion, the ISM is the nodal agency coordinating efforts to build a sustainable semiconductor and display manufacturing ecosystem.
- Fiscal Incentives: The government offers substantial fiscal support, including covering 50% of the project cost for setting up fabrication plants (fabs), assembly, testing, marking, and packaging (ATMP) units, and compound semiconductor facilities, regardless of chip size.
- Production-Linked Incentive (PLI) Scheme: This scheme provides financial incentives based on incremental sales to boost domestic manufacturing across various electronics sectors, highlighting semiconductors as a top priority.
- State-Level Support: Various state governments (Gujarat, Tamil Nadu, Uttar Pradesh, etc.) are actively competing to attract investments by offering additional subsidies, land rebates, and tax exemptions, creating a competitive environment for businesses.
- Design-Linked Incentive (DLI) Scheme: This program supports domestic startups and innovators in chip design, fostering indigenous intellectual property (IP) and R&D capabilities.
Major Global and Domestic Investments
Several multi-billion dollar projects are currently underway, signaling confidence from global partners:
- Micron Technology: The US-based chipmaker is investing $2.75 billion in an ATMP facility in Sanand, Gujarat, which is expected to be operational by late 2025.
- Tata Electronics & PSMC: A joint venture with Taiwan's PSMC is investing over $10 billion to build a state-of-the-art semiconductor fabrication plant in Dholera, Gujarat, with production expected by late 2026.
- CG Power, Renesas & Stars Microelectronics: A collaboration investing over $900 million in an ATMP facility in Sanand, Gujarat, focusing on chips for automotive, consumer, and industrial applications.
- Tata Semiconductor Assembly and Test (TSAT): A separate Tata initiative investing $3.25 billion in an ATMP unit in Morigaon, Assam.
- Applied Materials & Lam Research: Global equipment manufacturers are investing in engineering and training centers, with Lam Research pledging to train 60,000 Indian engineers, addressing the skill development needs.
Strategic Context and Talent Pool
India possesses a significant advantage with approximately 20% of the world's semiconductor design talent. The country's strategy aims to reduce dependence on vulnerable global supply chains, leverage its massive domestic demand from industries like automotive, electronics, and AI, and position itself as a reliable and diversified manufacturing hub in the global market.
The presence of a vital equipment supplier like ASML would be a strategic step, providing essential support for the new fabs being established across the country, further solidifying India's position in the global chip ecosystem. |
