Dutch tech giant ASML signed a deal with Tata Electronics on May 16 to help build and scale up a semi-conductor plant in India, 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 in western India.
The Dutch firm would deploy its advanced lithography tools in the plant, which enable the rapid mass production of high-tech microchips, found in everything from cars to mobile phones.
The deal came as the Netherlands and India struck 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 semi-conductor 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 $11bn, will make semi-conductor 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 millions of 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.
