India’s Tata and Dutch giant ASML sign semiconductor deal during Modi’s visit | International Business News

Prime Minister Narendra Modi says his talks with the Dutch Prime Minister also focused on expanding cooperation on defense and security.

India’s Tata Electronics has signed a deal with Dutch technology giant ASML to build a large semiconductor factory in western India, as Prime Minister Narendra Modi visited the Netherlands on his European tour.

The deal, announced on Saturday, will support the development of Tata’s semiconductor plant in Dholera, Gujarat – Modi’s hometown.

ASML, Europe’s largest technology company by market value, produces state-of-the-art systems for the production of advanced microchips found in products from mobile phones to cars.

The Dutch company said it would help “establish and expand” production at the factory by providing its advanced manufacturing equipment.

Tata Electronics plans to invest up to $11bn in the facility, which is expected to manufacture smart chips for the automotive industry and other sectors.

ASML CEO Christophe Fouquet said the company saw “huge opportunities” in India’s growing semiconductor industry.

“We are committed to establishing a long-term partnership in this area,” Fouquet said in a statement.

The agreement comes as India and the Netherlands move to expand economic ties, with New Delhi looking for foreign technology and investment to support manufacturing and job creation.

The European Union has long viewed India – the world’s most populous country and one of the fastest growing economies – as an important market for the future.

During his visit, Modi held talks with Dutch Prime Minister Rob Jetten and met King Willem-Alexander.

“My discussions with Prime Minister Rob Jetten were extensive and covered many topics,” Modi wrote on X.

“One of them was defense and security. I talked about the possibility of preparing a defense work plan as soon as possible. We can also cooperate in areas such as space travel, maritime systems, and maritime security.”

Modi also spoke to members of the Indian diaspora and is expected to look at the Chola copper plates returned to India by Leiden University.

Indian and Dutch officials are also discussing flexible visas for Indian students and workers in the Netherlands.

Modi will travel to Sweden for talks with Prime Minister Ulf Kristersson that will focus on trade, arts and green technology cooperation. The visit is his second visit to the country since he participated in the first India-Nordic summit in 2018.