India’s first semiconductor fabrication facility coming up in Gujarat’s Dholera will use advanced lithography systems from Dutch technology giant ASML, Union Electronics and IT Minister Ashwini Vaishnaw has said. The minister confirmed the development during a visit to the company’s facility in Veldhoven on Friday.
Tata Electronics is setting up a semiconductor fab in Dholera, apart from a semiconductor assembly, test and packaging facility in Assam’s Jagiroad.
During the visit to ASML’s headquarters in Veldhoven, Netherlands, Minister Vaishnaw highlighted the critical role of lithography in semiconductor production, calling it “the most complex and the most precise work” involved in printing circuits onto silicon wafers. He stated, “Our fab in Dholera will be using the ASML equipment. So, I have come to visit here and understand their technology.” The minister praised ASML as the world’s leading provider of lithographic tools, noting that the company’s involvement in the Dholera plant signals growing international confidence in India’s semiconductor ecosystem.
Equipment manufacturers from all over the world are setting up a base in India, because of the design capabilities, huge talent pool and the consistent policies of PM @narendramodi ji.
— Ashwini Vaishnaw (@AshwiniVaishnaw) January 23, 2026
ASML enables practically every chip manufactured in the world. Its entire senior leadership… pic.twitter.com/8903N9QCAj
Ashwini Vaishnaw said that ASML’s decision to supply equipment to the facility is part of a broader trend, with equipment manufacturers worldwide eyeing India due to its robust design capabilities, vast talent pool, and consistent policies under Prime Minister Narendra Modi. “India has started a new semiconductor industry, and in the entire semiconductor industry, lithography, which basically means printing the circuit on the wafer, is the most complex and the most precise work which is required to be done,” Vaishnaw said.
The Dholera plant, being established by the Tata Group, represents a major investment of approximately Rs 91,000 crore. The Indian government is providing substantial support, with the central authorities committing 50% fiscal aid on a pari-passu basis, complemented by 20% from the state government.
The minister also said that out of several semiconductor plants coming up in the country, four will start commercial production this year itself. This include both the Tata plants. “The first commercial production will begin in 2026, with four plants expected to commence operations this year. The pilot production has already started in three plants in 2025,” he said.
ASML, the only maker of machines used by major chipmakers
ASML holds a unique position in the global semiconductor industry as the sole manufacturer of extreme ultraviolet (EUV) lithography machines, which are indispensable for producing the most advanced microchips with features smaller than 7 nanometres. These sophisticated systems, costing around $200 million each, enable the creation of faster, more energy-efficient chips that power everything from smartphones and data centres to artificial intelligence applications.
The company’s monopoly in the sector arises from decades of intensive research and development, strategic collaborations, and barriers to entry that include enormous financial investments and complex engineering challenges, making it the major supplier for leading chipmakers such as TSMC, Samsung, and Intel. ASML’s lithography machines are massive in size with a weight of over 180 tons. A single machine is shipped in around 40 shipping containers, requiring three Boeing 747 cargo jets.
ASML has already decided to set up a customer support office at Gujarat’s GIFT City, and a full-fledged facility in Dholera.
