ASML Plans India Partnerships to Boost Semiconductor Industry

ASML, the Dutch tech giant known for its cutting-edge chipmaking equipment, is exploring potential partnerships in India’s semiconductor industry as the country accelerates efforts to build its own manufacturing ecosystem.

This concurrent opportunity comes while global interest in semiconductors is on the rise across industries, from smartphones and vehicles to advanced telecom.

India is undertaking its Semiconductor Mission, a $10 billion endeavor to create an independent system of high-tech chip manufacturing and reduce dependence on imports.

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This government-funded action has started to draw attention from global leaders such as ASML whose extreme ultraviolet (EUV) lithography machines are indispensable to producing the most advanced chips.

ASML indicated that discussions are taking place with several Indian companies and research institutions regarding possible partnerships that could lead to technology sharing, workforce training, and assistance in building advanced fabrication plants, all of which will be crucial for India to build its role in the global semiconductor supply chain.

The increasing trade uncertainties and a backdrop of a global chip shortage - have made diversification of semiconductor production vital. With its expanding tech ecosystem and growing skilled workforce of engineers, India has considerable potential. However, the result is still outsized capital costs of fabs and uncertainty about continued support from the government.

If ASML moves down this path of greater involvement, their expertise could give India the technological advantage it needs to be a substantial player in the global semiconductor space and enable new growth opportunities in a number of industries.