Dutch tech giant ASML signed a deal with Tata Electronics to help build and scale up a semiconductor plant, overseen by Prime Minister Narendra Modi on his tour of the Netherlands.
ASML, which makes cutting-edge machines to manufacture semi-conductors, said it would “enable the establishment and ramp-up” of the Dholera plant in Modi’s home state of Gujarat.
The Dutch firm would deploy its advanced lithography tools in the plant, which allow for the rapid mass production of high-tech microchips.
The deal came as the Netherlands and India were set to strike an economic partnership accord, following on from a free-trade agreement between India and the European Union that Modi dubbed “the mother of all deals”.
ASML, Europe’s biggest tech firm by market value, said it saw “many compelling opportunities” in the Indian semiconductor sector.
“We are committed to establishing long-term partnerships in the region,” said ASML’s chief executive officer Christophe Fouquet in a statement.
Tata Electronics’ plant, with a planned investment of US$11bil (RM43.5bil), will make semiconductor chips for the AI sector, as well as the car industry and other economic segments.
New Delhi sees the European bloc as an important source of much-needed technology and investment to rapidly upscale its infrastructure and create new jobs.
On the other side, the EU has eyed India – the world’s most populous nation and a fast-growing economy – as an important market for the future.
Modi’s trip to the Netherlands was his second since 2017, as the two countries seek to boost bilateral trade from the US$27.8bil last year. — AFP
