ASML Launches Operations in India: A New Era for Semiconductor Manufacturing

ASML's Entry into the Indian Market

New Delhi: ASML, a leading manufacturer of semiconductor equipment, has officially commenced its operations in India. The company plans to recruit 20 to 30 recent engineering graduates to kickstart its workforce, according to a senior executive.

During the SEMICON India 2026 event, Lin Kiat Yap, ASML's Executive Vice President and Head of Customer Support, shared insights on the company's growth strategy, which hinges on the success of Tata Electronics' chip manufacturing unit and India's ambitions in the semiconductor sector.

When asked about the timeline for scaling operations in India, Yap stated, "We are starting right now with a team of 20-30 people. The pace of our expansion will depend on India's ambitions and those of Tata."

ASML specializes in advanced lithography technology essential for creating circuits on silicon wafers, forming the backbone of semiconductor production.

The company holds a dominant position in this technology, as no advanced chips can be produced without its equipment.

Yap noted that many of ASML's clients are expanding their facilities domestically.

"It's encouraging that Tata is taking initial steps to establish the ecosystem. It's crucial to continue developing this ecosystem by introducing additional players. We aim to support Tata's success, as it will inspire others to invest more time and resources in India, recognizing the potential opportunities," he remarked.

At the event, Allan Wayne, ASML's Chief Strategic Sourcing and Procurement Officer, highlighted that Tata Electronics is the first Indian customer to operate a 300-millimeter semiconductor fabrication facility, capable of producing 50,000 wafers monthly.

"To scale operations, we need to establish multiple fabs here. We are optimistic about the current policies from Prime Minister Narendra Modi's administration, which support the ecosystem, along with the exceptional talent available in India," Wayne added.

Wayne emphasized that ASML's presence in the region is not just about supporting clients but also about harnessing local talent.

"By 2032, India's goal is to fulfill 15 to 25 percent of its local semiconductor demand through domestic wafer fabs, necessitating several manufacturing plants," he explained.

The Indian government has introduced the Semicon 2.0 initiative, offering incentives of approximately ₹1.27 lakh crore (around USD 13.5 billion) to foster the semiconductor ecosystem.

Union Minister Ashwini Vaishnaw indicated that investment proposals totaling USD 12 billion are anticipated under this new scheme for chip production.

Wayne remarked that the government's ambition to satisfy 35 to 50 percent of India's semiconductor demand locally by 2035 implies the need for around a dozen high-capacity chip manufacturing plants.

"At some point, we may consider local manufacturing, although there are currently no concrete plans in place," he noted.

He stressed that talent and innovation are vital for advancing chip manufacturing in India.

"I have no concerns about innovation in India, especially given what I've observed recently. However, it's essential for Tata's first 300-mm fab to achieve quality and yield on schedule to avoid delays," Wayne stated.

The Tata Electronics semiconductor facility is expected to commence operations in 2028.

"Timely delivery is crucial, and we anticipate seeing more of our clients coming to India. This necessitates having the right talent to support these developments. We are excited to be here now," Wayne concluded.

Tata Electronics plans to collaborate with approximately 450 vendors at its Dholera plant and is constructing 363 vendor parks to accommodate them.