SynopsisTata Electronics and ASML are exploring manufacturing advanced chipmaking components in India. This collaboration aims to boost localization within India's semiconductor ecosystem. Discussions are in early stages, following a recent memorandum of understanding. The focus includes precision mechanicals and electronic modules for lithography machines. This move signals India's growing role in the global semiconductor supply chain.AgenciesTata Electronics is in early discussions with Dutch chip equipment maker ASML to explore manufacturing components and subassemblies for semiconductor lithography machines in India, potentially integrating the country into the global chipmaking equipment supply chain. (Representative image)New Delhi|Chennai: Tata Electronics is in early discussions with its Dutch partner ASML to explore manufacturing components and subassemblies for the world's most advanced chipmaking equipment, potentially marking India's entry into the manufacturing ecosystem behind semiconductor lithography, people familiar with the matter told ET. ASML is the world's sole supplier of extreme ultraviolet (EUV) photolithography machines required for producing the most advanced semiconductor chips."Tata Electronics and ASML are looking into how they can strengthen their partnership by boosting localisation in India," one of the people cited above said.Another person said, "There is complete agreement that it may be a long time away before ASML can manufacture its end-to-end machinery in India, but there is keenness they should explore manufacturing a part of it."Queries sent to Tata Electronics and ASML remained unanswered as of press time on Friday. Discussions between the two companies are in the preliminary stages. Talks are in line with the memorandum of understanding (MoU) the two companies signed on May 16.In Line with MoUTalks are in line with the memorandum of understanding (MoU) the two companies signed on May 16 for the deployment of ASML’s suite of advanced lithography tools and solutions for Tata Electronics’ Dholera fab, a third person said.Developing domestic talent and supply chain was mentioned as a key focus area in the MoU and these discussions for subassemblies were an extension of that, this person said.“The component space is exciting and one that is being closely watched, especially with India Semiconductor Mission (ISM) 2.0 and the thrust for localisation and subassemblies,” the person added.ASML Holding, which is Europe’s most valued company by market cap (between $660-690 billion), produced only 300 new EUV lithography machines in 2025, which are snapped up by world’s top chipmakers such as TSMC, Samsung and Intel. Subassemblies include precision-engineered modules and component systems that are assembled into ASML’s lithography machines.Analysts said a potential subassembly manufacturing push in India would be a natural extension for ASML and Tata Electronics, taking the relationship beyond equipment supply and into India’s manufacturing base itself.“Components realistically amenable to such localisation, even at an early exploratory stage, include precision mechanicals, frames, cabling, connectors, PCBs and certain lower-complexity mechatronic modules,” said Prabhu Ram, vice president, industry research group, at Cyber Media Research. “The most specialised subsystems, EUV optics and light sources, remain outside India’s technological reach for the foreseeable future,” he added.“Even modest progress here (on subassemblies) would embed exacting precision-engineering standards and quality discipline into the domestic supplier base, signalling how far India’s supply-chain credibility has advanced upstream,” Ram said.He noted that ASML functions as a system integrator, sourcing roughly 80% of its machine content from a global network of suppliers while maintaining deep, co-developmental relationships with a select group of strategic partners on critical subassemblies. These include Carl Zeiss SMT for optics, Cymer for the EUV light source, and VDL for vacuum vessels and mechatronic modules.Neil Shah, vice president of research at Counterpoint Research, attested that ASML’s model involves co-developing massive subassemblies with accredited suppliers.Read More News on...moreless