Preparations for India's first advanced semiconductor fab took a decisive step forward in May 2026.
On May 16, Tata Electronics signed a memorandum of understanding (MOU) with Dutch company ASML. Announced during Prime Minister Modi's official visit to the Netherlands, the agreement marks more than a procurement commitment — it represents a milestone in India's government-led push for semiconductor self-sufficiency. The scope of cooperation reportedly spans EUV/ArF lithography equipment supply through to technology transfer and workforce development.
Tata is developing an $11 billion fab in Dholera, Gujarat. In partnership with Taiwan's PSMC, the facility targets 28–110nm process nodes with a production goal of 50,000 wafers per month (300mm equivalent), aiming for mass production to begin in 2028.
Semiconductor investment in India is transitioning from the concept phase to the equipment and technology acquisition phase. Supplier involvement crystallizes factory construction timelines, technical specifications, and workforce requirements. Significant challenges remain between announcement and production, but the significance of this starting point should not be underestimated.
Rohm Joins India's Semiconductor Ecosystem Early
Japanese companies are also moving. In December 2025, Rohm announced a partnership with Tata Electronics, establishing cooperation for the joint development and manufacturing of SiC and GaN power devices. The company plans to begin mass production of 100V/300A-class SiC MOSFETs in 2026, with a clear direction toward participating in a power semiconductor supply chain built on India's manufacturing capacity.
Intel and Qualcomm are also expanding R&D and manufacturing investment in India, as global semiconductor companies increasingly position the country as a medium- to long-term supply chain diversification destination.
Investment Scale
$11 billion, including subsidies under India's PLI (Production-Linked Incentive) scheme.
Process & Partner
Partnership with Taiwan's PSMC (Powerchip Semiconductor Manufacturing Corp), covering 28–110nm process nodes.
Production Capacity Target
50,000 wafers per month (300mm equivalent). Mass production target: 2028.
ASML Cooperation Scope
Comprehensive cooperation including EUV/ArF lithography equipment supply, engineer training, and technology transfer.
Implications for Management, Procurement, and Design
The question of whether India can serve as an alternative to China does not yet have a clear affirmative answer. The 2028 mass production target remains a goal, contingent on securing stable access to equipment, materials, and engineers.
What matters, however, is that the groundwork preceding India's emergence as a manufacturing power has already begun. For strategy, procurement, and design teams evaluating component supply route diversification or the selection of design and manufacturing partners, monitoring the pace of India's supply chain development now will meaningfully expand the options available in three to five years.